Monster Worldwide Reports Fourth Quarter and Full Year 2007 Results
Monster Worldwide, Inc. (NASDAQ: MNST):
-- Total Revenue Increases 19% to $354 Million with Careers
International Revenue Growth of 59%
-- Diluted Earnings Per Share from Continuing Operations at
$0.36, Including $0.05 Per Share of Pro Forma Adjustments
-- Restructuring Efficiencies Drive Operating Margin Expansion to
18%, Compared with 15% and 13% in the Third and Second
Quarters, Respectively
-- Cash Generated from Operating Activities of $64 Million
-- Stock Buyback Authorization Increased by Additional $100
Million
Monster Worldwide, Inc. (NASDAQ: MNST) today reported financial
results for the fourth quarter and year ended December 31, 2007.
Total revenue grew 19% to $354 million in the fourth quarter of
2007 from $299 million in the comparable quarter of 2006.
Monster Careers revenue increased 23% to $317 million, compared
with $258 million in last year´s fourth quarter, led by International
revenue growth of 59% to $143 million. North American Careers revenue
increased 3% to $174 million in the fourth quarter of 2007. Internet
Advertising & Fees revenue was $37 million compared with $40 million
in last year´s comparable quarter. Consolidated operating income was
aided by a $3 million benefit from foreign exchange rates.
Monster Worldwide´s deferred revenue balance at December 31, 2007
grew 18% to $524 million over last year´s fourth quarter balance of
$444 million.
Income from continuing operations was $45 million, or $0.36 per
diluted share, in the fourth 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 December 31, 2007 is
a $0.05 per diluted share impact from costs associated with the
restructuring plan, the ongoing stock option investigation and 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. Excluding these costs, income from
continuing operations in the fourth quarter of 2007 was $52 million,
or $0.41 per diluted share, compared to $49 million, or $0.37 per
diluted share in the prior year.
At December 31, 2007, the Company´s net cash position was $578
million compared with $573 million at December 31, 2006. Cash
generated from operating activities was $64 million compared to $45
million in the fourth quarter of 2006. Capital expenditures totaled
$16 million in the fourth quarter of 2007. During the quarter, the
Company repurchased 2.8 million shares of its common stock for an
aggregate cost of $97 million. For the year ended December 31, 2007,
the Company repurchased 7.3 million shares of common stock for a total
cost of $252 million.
The Company also announced that its Board of Directors increased
the Company´s current stock repurchase authorization by an additional
$100 million, bringing the total authorization to $450 million. Giving
effect to the increased authorization and repurchases to date, the
Company currently has $253 million remaining under the program.
Sal Iannuzzi, Chairman and Chief Executive Officer of Monster
Worldwide, said "We are pleased with our strong fourth
quarter operating and financial performance in the face of more
challenging domestic conditions in the employment market. During the
quarter, we continued the aggressive strategic investment program
which we initiated early in the third quarter of 2007. This program
was designed to re-energize the Monster brand and foster product
innovation and enhanced technology. Monster´s strong 19% global
revenue growth, combined with the savings generated from the
restructuring plan that has funded investments, has allowed us to
significantly expand our operating margin since implementing the
program."
Mr. Iannuzzi added, "We are encouraged by the early progress we
have made in transforming Monster into a company focused on life
improvement. We have taken significant steps to enhance our
customers´ interaction with Monster by providing better and more
timely solutions to meet their changing needs. Despite the
current weaker economic environment, we are optimistic about our
longer-term growth prospects and believe our strategic
investments will position Monster to benefit as market conditions
improve over time, further strengthening Monster´s industry leadership
position. Our goal is to build a solid foundation to foster long-term
sustainable value for our customers, shareholders and global
associates."
Full Year Results
Monster Worldwide reported total revenue of $1,351 million for the
year ended December 31, 2007 compared to $1,117 million in 2006, a 21%
increase, or 18% before the benefit of foreign exchange rates. Monster
Careers revenue grew 24% to $1,195 million compared with $964 million
in 2006. Internet Advertising & Fees reported revenue of $156 million,
an increase of 2% over the prior year. The Company reported income
from continuing operations of $147 million, or $1.13 per diluted
share, compared to $154 million or $1.17 per diluted share in the
prior year.
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/Q407.pdf or through the Company´s
Investor Relations website at http://ir.monsterworldwide.com.
Conference Call Information
Fourth quarter 2007 results will be discussed on Monster
Worldwide´s quarterly conference call taking place on January 31,
2008 at 5:00 PM EST. To join the conference call, please dial (888)
551-5973 at 4:50 PM EDT and reference conference ID# 31117131. 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 #31117131. This number is valid
until midnight on February 7, 2008.
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 a security
breach in August 2007; 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.
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 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.
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MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Year Ended December
December 31, 31,
------------------- ---------------------
2007 2006 2007 2006
---------- -------- ---------- ----------
Revenue $353,988 $298,616 $1,351,309 $1,116,676
---------------------------- ---------- -------- ---------- ----------
Salaries and related 132,828 114,596 529,578 411,849
Office and general 70,890 59,772 277,262 201,457
Marketing and promotion 80,697 66,418 313,159 273,506
Restructuring and other
special charges 5,442 - 16,597 -
---------------------------- ---------- -------- ---------- ----------
Total operating expenses 289,857 240,786 1,136,596 886,812
---------------------------- ---------- -------- ---------- ----------
Operating income 64,131 57,830 214,713 229,864
Interest and other, net 6,840 6,398 25,344 18,480
---------------------------- ---------- -------- ---------- ----------
Income from continuing
operations before income
taxes and equity interests 70,971 64,228 240,057 248,344
Income taxes 24,843 22,481 84,599 87,661
Losses in equity interests,
net (838) (1,517) (8,298) (7,096)
---------------------------- ---------- -------- ---------- ----------
Income from continuing
operations 45,290 40,230 147,160 153,587
Loss from discontinued
operations, net of tax (290) (1,155) (761) (116,450)
---------------------------- ---------- -------- ---------- ----------
Net income $ 45,000 $ 39,075 $ 146,399 $ 37,137
============================ ========== ======== ========== ==========
Basic earnings per share:
Earnings per share from
continuing operations $ 0.36 $ 0.31 $ 1.14 $ 1.20
Loss from discontinued
operations, net of tax - (0.01) (0.01) (0.91)
---------------------------- ---------- -------- ---------- ----------
Basic earnings per share* $ 0.36 $ 0.30 $ 1.14 $ 0.29
============================ ========== ======== ========== ==========
Diluted earnings per share:
Earnings per share from
continuing operations $ 0.36 $ 0.31 $ 1.13 $ 1.17
Loss from discontinued
operations, net of tax - (0.01) (0.01) (0.89)
---------------------------- ---------- -------- ---------- ----------
Diluted earnings per share* $ 0.36 $ 0.30 $ 1.12 $ 0.28
============================ ========== ======== ========== ==========
*Basic and diluted earnings (loss) per share may not add in certain
periods due to rounding.
Weighted average shares outstanding:
Basic 125,504 128,489 128,785 128,077
============================ ========== ======== ========== ==========
Diluted 126,704 131,209 130,755 131,247
============================ ========== ======== ========== ==========
Operating income before depreciation and amortization:
Operating income $ 64,131 $ 57,830 $ 214,713 $ 229,864
Depreciation and
amortization of intangibles 12,828 9,765 46,977 39,780
Amortization of stock based
compensation 3,728 2,424 28,181 10,819
---------------------------- ---------- -------- ---------- ----------
Operating income before
depreciation and
amortization $ 80,687 $ 70,019 $ 289,871 $ 280,463
======================================= ======== ========== ==========
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MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended Year Ended December 31,
December 31,
--------------------- -------------------------
2007 2006 2007 2006
---------- ---------- ------------ ------------
Cash flows provided by
operating activities:
Net income $ 45,000 $ 39,075 $ 146,399 $ 37,137
---------------------- ---------- ---------- ------------ ------------
Adjustments to
reconcile net income
to net cash provided
by operating
activities:
Loss from
discontinued
operations, net of
tax 290 1,155 761 116,450
Depreciation and
amortization of
intangibles 12,828 9,765 46,977 39,780
Provision for
doubtful accounts 4,453 2,550 12,906 9,055
Non-cash
compensation 3,728 2,424 28,181 10,819
Common stock issued
for matching
contribution to
401(k) plan - - - 1,854
Deferred income
taxes (2,762) 2,267 (5,459) 10,781
Loss (gain) on
disposal of assets 3 - (571) -
Loss in equity
interests and other 838 1,521 8,298 7,096
Changes in assets and
liabilities, net of
business
combinations:
Accounts receivable (101,843) (122,790) (67,778) (171,312)
Prepaid and other (12,766) 2,465 (24,977) (21,817)
Deferred revenue 89,650 97,440 80,186 116,556
Accounts payable,
accrued liabilities
and other 27,091 11,322 51,840 92,595
Net cash provided by
(used for)
operating
activities of
discontinued
operations (2,326) (2,635) (7,584) 19,201
---------------------- ---------- ---------- ------------ ------------
Total adjustments 19,184 5,484 122,780 231,058
---------------------- ---------- ---------- ------------ ------------
Net cash provided by
operating activities 64,184 44,559 269,179 268,195
---------------------- ---------- ---------- ------------ ------------
Cash flows used for
investing activities:
Capital expenditures (16,240) (17,238) (64,055) (55,606)
Purchase of
marketable
securities (415,025) (373,959) (1,424,861) (1,722,425)
Sales and maturities
of marketable
securities 478,068 342,351 1,514,051 1,308,279
Payments for
acquisitions and
intangible assets,
net of cash
acquired (610) (688) (2,549) (19,601)
Investment in
unconsolidated
affiliate - - - (19,936)
Net proceeds from
sale of business - - 69,155
Cash funded to
equity investee - (2,800) (10,000) (10,000)
Net cash used for
investing
activities of
discontinued
operations - - - (2,924)
---------------------- ---------- ---------- ------------ ------------
Net cash provided by
(used for) investing
activities 46,193 (52,334) 12,586 (453,058)
---------------------- ---------- ---------- ------------ ------------
Cash flows provided by
financing activities:
Payments on capital
lease obligations (42) 322 (100) (171)
Payments on
acquisition debt (1,500) 440 (23,362) (29,245)
Proceeds from
exercise of
employee stock
options 838 1,038 54,890 92,263
Excess tax benefits
from equity
compensation plans (155) 632 13,799 17,972
Repurchase of common
stock (97,761) (318) (262,495) (14,734)
Structured stock
repurchase, net - - - (22,758)
---------------------- ---------- ---------- ------------ ------------
Net cash (used in)
provided by financing
activities (98,620) 2,114 (217,268) 43,327
---------------------- ---------- ---------- ------------ ------------
Effects of exchange
rates on cash 772 1,553 6,567 3,619
Net increase
(decrease) in cash
and cash equivalents 12,529 (4,108) 71,064 (137,917)
Cash and cash
equivalents,
beginning of period 117,215 62,788 58,680 196,597
---------------------- ---------- ---------- ------------ ------------
Cash and cash
equivalents, end of
period $ 129,744 $ 58,680 $ 129,744 $ 58,680
====================== ========== ========== ============ ============
Free cash flow:
Net cash provided by
operating activities $ 64,184 $ 44,559 $ 269,179 $ 268,195
Less: Capital
expenditures (16,240) (17,238) (64,055) (55,606)
---------------------- ---------- ---------- ------------ ------------
Free cash flow $ 47,944 $ 27,321 $ 205,124 $ 212,589
====================== ========== ========== ============ ============
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MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets: December December
31, 2007 31, 2006
---------- ----------
Cash and cash equivalents $ 129,744 $ 58,680
Available-for-sale securities 448,703 537,893
Accounts receivable, net 499,854 444,747
Property and equipment, net 126,962 102,402
Goodwill and intangibles, net 661,850 640,736
Other assets 210,697 185,345
----------------------------------------------- ---------- ----------
Total assets $2,077,810 $1,969,803
=============================================== ========== ==========
Liabilities and Stockholders´ equity:
Accounts payable, accrued expenses and other $ 304,145 $ 358,850
Deferred revenue 524,331 444,145
Long-term income taxes payable 111,108 -
Other liabilities 21,310 33,459
Debt 415 23,664
----------------------------------------------- ---------- ----------
Total liabilities 961,309 860,118
----------------------------------------------- ---------- ----------
Stockholders´ equity 1,116,501 1,109,685
----------------------------------------------- ---------- ----------
Total liabilities and stockholders´ equity $2,077,810 $1,969,803
=============================================== ========== ==========
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MONSTER WORLDWIDE, INC.
UNAUDITED OPERATING SEGMENT INFORMATION
(in thousands)
MONSTER
---------------------------------------------
Three Months Ended Careers - Careers - Internet Subtotal
December 31, 2007 North International Advertising
America & Fees
----------------------------------------------------------------------
Revenue $173,577 $143,300 $37,111 $353,988
Operating income 52,950 24,753 75 77,778
OIBDA 59,147 29,980 2,592 91,719
Operating margin 30.5% 17.3% 0.2% 22.0%
OIBDA margin 34.1% 20.9% 7.0% 25.9%
MONSTER
---------------------------------------------
Three Months Ended Careers - Careers - Internet Subtotal
December 31, 2006 North International Advertising
America & Fees
----------------------------------------------------------------------
Revenue $168,327 $89,933 $40,356 $298,616
Operating income 59,853 9,658 11,170 80,681
OIBDA 64,984 13,001 12,849 90,834
Operating margin 35.6% 10.7% 27.7% 27.0%
OIBDA margin 38.6% 14.5% 31.8% 30.4%
MONSTER
---------------------------------------------
Year Ended December 31, Careers - Careers - Internet Subtotal
2007 North International Advertising
America & Fees
------------------------ ---------------------------------------------
Revenue $707,384 $488,038 $155,887 $1,351,309
Operating income 224,862 52,113 12,092 289,067
OIBDA 248,664 72,832 21,892 343,388
Operating margin 31.8% 10.7% 7.8% 21.4%
OIBDA margin 35.2% 14.9% 14.0% 25.4%
MONSTER
---------------------------------------------
Year Ended December 31, Careers - Careers - Internet Subtotal
2006 North International Advertising
America & Fees
------------------------ ---------------------------------------------
Revenue $658,051 $306,280 $152,345 $1,116,676
Operating income 227,202 17,423 45,062 289,687
OIBDA 247,087 33,037 52,196 332,320
Operating margin 34.5% 5.7% 29.6% 25.9%
OIBDA margin 37.5% 10.8% 34.3% 29.8%
Three Months Ended December 31, 2007 Corporate Total
Expenses
--------------------------------------------- -----------------------
Revenue $353,988
Operating income $(13,647) 64,131
OIBDA (11,032) 80,687
Operating margin 18.1%
OIBDA margin 22.8%
Three Months Ended December 31, 2006 Corporate Total
Expenses
--------------------------------------------- -----------------------
Revenue $298,616
Operating income $(22,851) 57,830
OIBDA (20,815) 70,019
Operating margin 19.4%
OIBDA margin 23.4%
Year Ended December 31, 2007 Corporate Total
Expenses
---------------------------------------- -----------------------
Revenue $1,351,309
Operating income $(74,354) 214,713
OIBDA (53,517) 289,871
Operating margin 15.9%
OIBDA margin 21.5%
Year Ended December 31, 2006 Corporate Total
Expenses
---------------------------------------- -----------------------
Revenue $1,116,676
Operating income $(59,823) 229,864
OIBDA (51,857) 280,463
Operating margin 20.6%
OIBDA margin 25.1%
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MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
For the Three Months Ended December
31, 2007
------------------------------------
As Reported Proforma Non-GAAP
Adjustments
----------- ------------ -----------
Revenue $353,988 - $353,988
Salaries and related 132,828 - 132,828
Office and general 70,890 (4,781) a 66,109
Marketing and promotion 80,697 - 80,697
Restructuring and other special b
charges 5,442 (5,442) -
---------- ---------- ----------
Total operating expenses 289,857 (10,223) 279,634
---------- ---------- ----------
Operating income 64,131 10,223 74,354
Operating margin 18.1% 21.0%
Interest and other, net 6,840 - 6,840
---------- ---------- ----------
Income from continuing operations
before income taxes and equity
interests 70,971 10,223 81,194
Income taxes 24,843 3,579 c 28,422
Losses in equity interests, net (838) - (838)
---------- ---------- ----------
Income from continuing operations $45,290 $6,644 $51,934
========== ========== ==========
Diluted Earnings per share from
continuing operations * $0.36 $0.05 $0.41
========== ========== ==========
Weighted average shares
outstanding:
Diluted 126,704 126,704 126,704
Year Ended December 31, 2007
-----------------------------------
As Reported Proforma Non-GAAP
Adjustments
----------- ------------ -----------
Revenue $1,351,309 - $1,351,309
Salaries and related 529,578 (15,777) a 513,801
Office and general 277,262 (28,198) a 249,064
Marketing and promotion 313,159 - 313,159
Restructuring and other special b
charges 16,597 (16,597) -
---------- ---------- ----------
Total operating expenses 1,136,596 (60,572) 1,076,024
---------- ---------- ----------
Operating income 214,713 60,572 275,285
Operating margin 15.9% 20.4%
Interest and other, net 25,344 - 25,344
---------- ---------- ----------
Income from continuing operations
before income taxes and equity
interests 240,057 60,572 300,629
Income taxes 84,599 21,346 c 105,945
Losses in equity interests, net (8,298) - (8,298)
---------- ---------- ----------
Income from continuing operations $147,160 $39,226 $186,386
========== ========== ==========
Diluted Earnings per share from
continuing operations * $1.13 $0.30 $1.43
========== ========== ==========
Weighted average shares
outstanding:
Diluted 130,755 130,755 130,755
For the Three Months Ended
December 31, 2006
----------------------------------
As Reported Proforma Non-GAAP
Adjustments
----------------------------------
Revenue $298,616 - $298,616
Salaries and related 114,596 (5,000) a 109,596
Office and general 59,772 (8,566) a 51,206
Marketing and promotion 66,418 - 66,418
Restructuring and other special
charges - - -
----------- --------- ----------
Total operating expenses 240,786 (13,566) 227,220
----------- --------- ----------
Operating income 57,830 13,566 71,396
Operating margin 19.4% 23.9%
Interest and other, net 6,398 - 6,398
----------- --------- ----------
Income from continuing operations
before income taxes and equity
interests 64,228 13,566 77,794
Income taxes 22,481 4,748 c 27,229
Losses in equity interests, net (1,517) (1,517)
----------- --------- ----------
Income from continuing operations $40,230 $8,818 $49,048
=========== ========= ==========
Diluted Earnings per share from
continuing operations * $0.31 $0.07 $0.37
=========== ========= ==========
Weighted average shares outstanding:
Diluted 131,209 131,209 131,209
Year Ended December 31, 2006
----------------------------------
As Reported Proforma Non-GAAP
Adjustments
----------------------------------
Revenue $1,116,676 - $1,116,676
Salaries and related 411,849 (5,000) a 406,849
Office and general 201,457 (13,279) a 188,178
Marketing and promotion 273,506 - 273,506
Restructuring and other special
charges - - -
----------- --------- ----------
Total operating expenses 886,812 (18,279) 868,533
----------- --------- ----------
Operating income 229,864 18,279 248,143
Operating margin 20.6% 22.2%
Interest and other, net 18,480 - 18,480
----------- --------- ----------
Income from continuing operations
before income taxes and equity
interests 248,344 18,279 266,623
Income taxes 87,661 6,452 c 94,113
Losses in equity interests, net (7,096) - (7,096)
----------- --------- ----------
Income from continuing operations $153,587 $11,827 $165,414
=========== ========= ==========
Diluted Earnings per share from
continuing operations * $1.17 $0.09 $1.26
=========== ========= ==========
Weighted average shares outstanding:
Diluted 131,247 131,247 131,247
Note Regarding ProForma 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.
ProForma adjustments consist of the following:
a Costs associated with the ongoing investigation into the Company´s
historical stock option granting practices, severance charges
associated with the termination of certain executives in the
second quarter of 2007 and costs associated with the remediation
of a security breach related to the Company´s resume database in
August 2007.
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.
*Diluted earnings per share may not add in certain periods due to
rounding.
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MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)
MONSTER
------------------------------------------------
Three Months Ended Careers - Careers - Internet Subtotal
December 31, 2007 North International Advertising
America & Fees
------------------------------ -------------- ------------ ----------
Revenue $173,577 $143,300 $ 37,111 $ 353,988
Operating income -
GAAP $ 52,950 $ 24,753 $ 75 $ 77,778
Proforma Adjustments 3,532 3,946 1,275 8,753
-------- ------------- ----------- ----------
Operating income -
Non GAAP $ 56,482 $ 28,699 $ 1,350 $ 86,531
======== ============= =========== ==========
Operating margin -
GAAP 30.5% 17.3% 0.2% 22.0%
Operating margin -
Non GAAP 32.5% 20.0% 3.6% 24.4%
MONSTER
------------------------------------------------
Three Months Ended Careers - Careers - Internet Subtotal
December 31, 2006 North International Advertising
America & Fees
------------------------------ -------------- ------------ ----------
Revenue $168,327 $ 89,933 $ 40,356 $ 298,616
Operating income -
GAAP $ 59,853 $ 9,658 $ 11,170 $ 80,681
Proforma Adjustments - - - -
-------- ------------- ----------- ----------
Operating income -
Non GAAP $ 59,853 $ 9,658 $ 11,170 $ 80,681
======== ============= =========== ==========
Operating margin -
GAAP 35.6% 10.7% 27.7% 27.0%
Operating margin -
Non GAAP 35.6% 10.7% 27.7% 27.0%
MONSTER
------------------------------------------------
Year Ended December Careers - Careers - Internet Subtotal
31, 2007 North International Advertising
America & Fees
-------------------- --------- -------------- ------------ ----------
Revenue $707,384 $488,038 $155,887 $1,351,309
Operating income -
GAAP $224,862 $ 52,113 $ 12,092 $ 289,067
Proforma Adjustments 11,957 10,191 3,192 25,340
-------- ------------- ----------- ----------
Operating income -
Non GAAP $236,819 $ 62,304 $ 15,284 $ 314,407
======== ============= =========== ==========
Operating margin -
GAAP 31.8% 10.7% 7.8% 21.4%
Operating margin -
Non GAAP 33.5% 12.8% 9.8% 23.3%
MONSTER
------------------------------------------------
Year Ended December Careers - Careers - Internet Subtotal
31, 2006 North International Advertising
America & Fees
-------------------- --------- -------------- ------------ ----------
Revenue $658,051 $306,280 $152,345 $1,116,676
Operating income -
GAAP $227,202 $ 17,423 $ 45,062 $ 289,687
Proforma Adjustments - - - -
-------- ------------- ----------- ----------
Operating income -
Non GAAP $227,202 $ 17,423 $ 45,062 $ 289,687
======== ============= =========== ==========
Operating margin -
GAAP 34.5% 5.7% 29.6% 25.9%
Operating margin -
Non GAAP 34.5% 5.7% 29.6% 25.9%
Three Months Ended December 31, 2007 Corporate Total
Expenses
----------------------------------------------------------- ----------
Revenue $ 353,988
Operating income - GAAP $(13,647) $ 64,131
Proforma Adjustments 1,470 10,223
--------- ----------
Operating income - Non GAAP $(12,177) $ 74,354
========= ==========
Operating margin - GAAP 18.1%
Operating margin - Non GAAP 21.0%
Three Months Ended December 31, 2006 Corporate Total
Expenses
----------------------------------------------------------- ----------
Revenue $ 298,616
Operating income - GAAP $(22,851) $ 57,830
Proforma Adjustments 13,566 13,566
--------- ----------
Operating income - Non GAAP $ (9,285) $ 71,396
========= ==========
Operating margin - GAAP 19.4%
Operating margin - Non GAAP 23.9%
Year Ended December 31, 2007 Corporate Total
Expenses
------------------------------------------------ ---------- ----------
Revenue $1,351,309
Operating income - GAAP $(74,354) $ 214,713
Proforma Adjustments 35,232 60,572
--------- ----------
Operating income - Non GAAP $(39,122) $ 275,285
========= ==========
Operating margin - GAAP 15.9%
Operating margin - Non GAAP 20.4%
Year Ended December 31, 2006 Corporate Total
Expenses
------------------------------------------------ ---------- ----------
Revenue $1,116,676
Operating income - GAAP $(59,823) $ 229,864
Proforma Adjustments 18,279 18,279
--------- ----------
Operating income - Non GAAP $(41,544) $ 248,143
========= ==========
Operating margin - GAAP 20.6%
Operating margin - Non GAAP 22.2%
*T