UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2015
 
 
MONSTER WORLDWIDE, INC.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
Delaware
001-34209
13-3906555
 
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
 


 
 
 
133 Boston Post Road, Building 15
Weston, Massachusetts
02493
 
 
 
(Address of principal executive offices)
(Zip Code)
 
Registrant’s telephone number, including area code: (978) 461-8000
None
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On May 7, 2015, Monster Worldwide, Inc. (the “Company”) announced its results of operations for the quarter ended March 31, 2015. A copy of the Company’s press release announcing its results of operations for the quarter ended March 31, 2015 is attached hereto as Exhibit 99.1. A copy of the supplemental financial information issued by the Company in connection with the press release is attached hereto as Exhibit 99.2.
The information in this report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits.
99.1

 
Press Release of the Company Issued on May 7, 2015 Reporting the Company’s Results for the Quarter Ended March 31, 2015.
99.2

 
Supplemental Financial Information.






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
MONSTER WORLDWIDE, INC.
 
(Registrant)
 
 
 
 
By:
/s/ James M. Langrock
 
Name:
James M. Langrock
 
Title:
Executive Vice President and
Chief Financial Officer
Date: May 7, 2015






EXHIBIT INDEX
 
 
 
Exhibit
Number
 
Description
 
 
 
99.1
 
Press Release of the Company Issued on May 7, 2015 Reporting the Company’s Results for the Quarter Ended March 31, 2015.
 
 
 
99.2
 
Supplemental Financial Information.







Exhibit 99.1
 
Monster Worldwide Reports First Quarter 2015 Results
First Quarter Highlights:

Company Exceeds Expectations on EBITDA, EPS and Cash Flow
Consolidated Adjusted EBITDA of $27 Million; Careers – North America EBITDA Margin of 27%
Non-GAAP EPS of $0.08; GAAP EPS of $0.09
Cash Flow From Operations Increased 40% Year-Over-Year to $27 Million
Consolidated Bookings Increased 1% Year-Over-Year at Constant Currency
Core Careers – North America Bookings Grew 6%
Revenue of $184 Million Increased 1% Sequentially at Constant Currency
Completes Sale of Majority of Interest in Australian Joint Venture for $9 Million
“All the Jobs, All the People” Strategy Gaining Significant Traction with Continued Introduction of New Strategic Products
“Reallocate to Accelerate” Program Substantially Complete
Reiterates Q4 2015 EBITDA Margin Guidance of 18-22%
Weston, MA, May 7, 2015 — Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the first quarter ended March 31, 2015.
“Our first quarter profitability, cash flow and leverage metrics all exceeded our expectations,” said Tim Yates, President and Chief Executive Officer. “The bookings momentum we saw in our core North American Careers segment continued from previous quarters with 6% year-over-year growth. While we are pleased with the recent bookings trends, and expect them to continue, revenue growth and sales execution continues to be a primary focus. We welcome the addition of Paul Forte, a veteran sales leader, as our new head of North American sales. Bookings in our International segment increased 2% on a constant currency basis. We are confident that our new strategic products combined with our traditional core products provide a superior competitive solution for our customers. Our EBITDA margins expanded to 14.7% and we are confident we will continue to improve margins going forward, and we remain on track to achieve our 18-22% target exiting this year’s fourth quarter.”
During the quarter, we had a number of important business highlights including:
Debuted “All the Jobs” strategy for seekers with the unveiling of 3 million more jobs on Monster.com

1




Newly released Responsive Designed Homepage in the U.S. offers one site for every screen

Introduced Monster Social Job Ads in North America, a next generation social recruitment advertising solution

Launched new advertising campaign targeting Millennials, the single largest segment of the U.S. workforce for the next 2 decades

These initiatives are beginning to have a positive impact on our traffic metrics, particularly on North American organic traffic.
Tim Yates also commented: “Our actions in the first quarter demonstrate our commitment to our previously articulated capital allocation policies. Net debt decreased and leverage ratios improved, partially as a result of the sale of the majority of our interest in our break-even joint venture in Australia. We will continue to review other non-core assets.”
First Quarter 2015 Results
Revenue of $184 million decreased 7% compared to last year’s first quarter and 3% on a constant currency basis. Revenue in the first quarter of 2014 was $198 million. Revenue from the Company’s Careers – North America operations decreased 4% year-over-year and revenue from Careers – International decreased 13% year-over-year and 1% on a constant currency basis. Internet Advertising & Fees revenue and operating results are now being reported within the Careers – North America segment. Historical quarterly revenue data is available in the Company’s supplemental financial information.
Total GAAP operating expenses decreased to $193 million compared to $199 million in the first quarter of 2014. Net income attributable to Monster for the first quarter of 2015 was $8 million, or $0.09 per share, compared to net income attributable to Monster of $2 million, or $0.02 per share in the first quarter of 2014.
Non-GAAP net income attributable to the Company was $7 million, or $0.08 per share, compared to $7 million, or $0.08 per share in the first quarter of 2014. Non-GAAP operating expenses of $168 million decreased 8% year over year. Adjusted EBITDA margin of 15% was led by Careers – North America with a 27% 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 $27 million and free cash flow was $19 million. Deferred revenue grew sequentially to $304 million or 1% compared to $301 million as of

2



December 31, 2014. The Company ended the quarter with total available liquidity of approximately $170 million.
Reallocate to Accelerate

On February 10, 2015, the Company committed to implement a series of cost savings initiatives to reduce costs globally while continuing to support the Company’s new strategy. The initiatives include a global workforce reduction of approximately 300 associates, lease exit costs, impairment of certain assets, and office and general expense controls. Through March 31, 2015, approximately 200 associates in North America and Europe have been impacted, and the Company has incurred $20 million of charges relating to this program. These charges have been excluded from the Company’s non-GAAP financial statements for the three months ended March 31, 2015. The Company anticipates additional charges of approximately $3 million to $5 million in the second and third quarters of 2015 in connection with this program.

Segment Change

The Company has combined certain functions to better align resources and drive growth. As a result, the Internet Advertising & Fees segment has been combined with the Careers – North America segment. More specifically, Military.com will be managed by the Government Solutions business and Fastweb and Monster.com’s consumer advertising business will now be included in the Company’s core North American results.

Guidance
Second quarter 2015 Non-GAAP EPS from continuing operations is expected to be in the range of $0.07 to $0.11, which excludes $4 million to $5 million of stock-based compensation, $1.2 million of non-cash debt discount amortization related to the convertible debt and restructuring charges related to the Reallocate to Accelerate program.
The Company expects to exit 2015 with a fourth quarter EBITDA margin of between 18-22%.
Historical data on Non-GAAP EPS is available in the Company’s supplemental financial information.

3



Conference Call and Webcast
First quarter 2015 results will be discussed on Monster Worldwide’s quarterly conference call on May 7, 2015 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) 317-6003 or (412) 317-6061 and reference conference ID# 0430146. 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 (877) 344-7529 or (412) 317-0088 and reference ID# 10064152. This number is valid until midnight on May 15, 2015.

Contacts
Investors: Mike McGuinness, (212) 351-7110, michael.mcguinness@monster.com
Media:     Matt Anchin, (212) 351-7528, matt.anchin@monster.com

About Monster Worldwide
Monster Worldwide, Inc. (NYSE: MWW) is a global leader in connecting people to jobs, wherever they are. For more than 20 years, Monster has helped people improve their lives with better jobs, and employers find the best talent. Today, the company offers services in more than 40 countries, providing some of the broadest, most sophisticated job seeking, career management, recruitment and talent management capabilities. Monster continues its pioneering work of transforming the recruiting industry with advanced technology using intelligent digital, social and mobile solutions, including our flagship website monster.com® and a vast array of products and services. For more information visit http://monster.com/about.

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 second quarter 2015 and EBITDA margin for the fourth quarter 2015. 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

4



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, operating margin, net income, and diluted earnings per share attributable to Monster Worldwide, Inc. all exclude certain proforma adjustments including: non-cash stock based compensation expense; costs incurred in connection with the Company’s restructuring programs; non-cash impairment charges; amortization of the debt discount and deferred financing costs associated with our 3.50% convertible senior notes due 2019; write-off of deferred financing costs relating to our former credit facility, amended in October 2014; 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; income tax provisions for increased valuation allowances on deferred tax assets; gain on deconsolidation of subsidiaries and tax provisions thereon; gain on partial sale of an equity method investment and tax provisions thereon; and charges related to exited facilities and acquisition related costs.

In the first quarter of the calendar year 2015, the Company began to utilize a fixed long-term projected non-GAAP tax rate for reporting operating results and for planning, forecasting, and analyzing future periods. This change provides better consistency across the interim reporting periods by eliminating the effects of non-recurring and period-specific items. When projecting this long-term rate, the Company evaluated a five-year financial projection comprising the current and the next four years that exclude the income tax effects of the non-GAAP pre-tax adjustments described above, eliminates the effects of non-recurring and period specific items which can vary in size and frequency, and is reflective of the anticipated future geographic mix of income among tax jurisdictions. The projected rate also assumes no new acquisitions or disposals in the five-year period, eliminates the effect of tax valuation allowances, and takes into account other factors including the Company’s current tax structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where the Company operates. The non-GAAP tax rate is 35%. The Company intends to re-evaluate this long-term rate on an annual basis or if any significant events that may materially affect this long-term rate occur. This long-term rate could be subject to change for a variety of reasons, which may include (but are not limited to) for example, significant changes in the geographic earnings mix including future acquisition or disposition activity, having less income than anticipated, or fundamental tax law changes in major jurisdictions where the Company operates.

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.


5



Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as operating income or loss before depreciation and amortization, non-cash compensation expense, non-cash impairment charges, and non-cash costs incurred in connection with the Company’s restructuring programs. Adjusted EBITDA excludes the impact of the pro-forma adjustments discussed above. The Company considers EBITDA and Adjusted 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 and Adjusted EBITDA are non-GAAP measures 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 and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus unused borrowings under our credit facility. 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.

6



MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
 
Three Months Ended March 31,
 
2015
 
2014
Revenue
$
183,693

 
$
198,149

Salaries and related
93,746

 
101,999

Office and general
46,042

 
55,207

Marketing and promotion
33,161

 
41,413

Restructuring and other special charges
20,222

 

Total operating expenses
193,171

 
198,619

Operating loss
(9,478
)
 
(470
)
Gain on partial sale of equity method investment
8,849

 

Gain on deconsolidation of subsidiaries, net

 
11,828

Interest and other, net
(3,107
)
 
(1,323
)
(Loss) income before income taxes and loss in equity interests
(3,736
)
 
10,035

(Benefit from) provision for income taxes
(13,145
)
 
6,663

Loss in equity interests, net
(220
)
 
(133
)
Net income
9,189

 
3,239

Net income attributable to noncontrolling interest
(1,019
)
 
(1,174
)
Net income attributable to Monster Worldwide, Inc.
$
8,170

 
$
2,065

 
 
 
 
Basic earnings per share attributable to Monster Worldwide, Inc.
$
0.09

 
$
0.02

 
 
 
 
Diluted earnings per share attributable to Monster Worldwide, Inc.
$
0.09

 
$
0.02

 
 
 
 
Weighted average shares outstanding:
 
 
 
Basic
89,137

 
91,102

Diluted
91,474

 
94,416

 
 
 
 
EBITDA:
 
 
 
Operating loss
$
(9,478
)
 
$
(470
)
Depreciation and amortization of intangibles
11,807

 
12,519

Stock-based compensation
4,465

 
8,173

Restructuring non-cash expenses
4,226

 

EBITDA
$
11,020

 
$
20,222






MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
 
Three Months Ended March 31,
 
2015
 
2014
Cash flows provided by operating activities:
 
 
 
Net income
$
9,189

 
$
3,239

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
11,807

 
12,519

Provision for doubtful accounts
323

 
316

Stock-based compensation
4,465

 
8,173

Deferred income taxes
3,933

 
3,893

Non-cash restructuring charges
4,226

 

Loss in equity interests, net
220

 
133

Gain on deconsolidation of subsidiaries

 
(13,647
)
Amount reclassified from accumulated other comprehensive income

 
1,819

Gain on partial sale of equity method investment
(8,849
)
 

Excess income tax benefit from equity compensation plans

 
(130
)
Changes in assets and liabilities, net of acquisitions:
 
 
 
Accounts receivable
(255
)
 
14,501

Prepaid and other
(4,298
)
 
(14,838
)
Deferred revenue
9,946

 
(964
)
Accounts payable, accrued liabilities and other
(3,948
)
 
3,893

Total adjustments
17,570

 
15,668

Net cash provided by operating activities
26,759

 
18,907

Cash flows (used for) provided by investing activities:
 
 
 
Capital expenditures
(7,945
)
 
(10,700
)
Payments for acquisitions, net of cash acquired

 
(27,005
)
Investment in Alma Career Oy

 
(6,516
)
Cash funded to equity investee and other
976

 
(729
)
Capitalized patent defense costs
(2,263
)
 

Cash received from partial sale of equity investment
9,128

 

Net cash used for investing activities
(104
)
 
(44,950
)
Cash flows provided by (used for) financing activities:
 
 
 
Proceeds from borrowings on credit facilities
31,600

 
78,800

Payments on borrowings on credit facilities
(31,600
)
 

Payments on borrowings on term loan
(2,250
)
 
(1,875
)
Fees paid on the issuance of debt
(997
)
 

Repurchase of common stock

 
(39,653
)
Tax withholdings related to net share settlements of restricted stock awards and units
(5,494
)
 
(1,427
)
Excess income tax benefit from equity compensation plans

 
130

Net cash (used for) provided by financing activities
(8,741
)
 
35,975

Effects of exchange rates on cash
(1,981
)
 
118

Net increase in cash and cash equivalents
15,933

 
10,050

Cash and cash equivalents, beginning of period
94,297

 
88,581

Cash and cash equivalents, end of period
$
110,230

 
$
98,631

 
 
 
 
Free cash flow:
 
 
 
Net cash provided by operating activities
$
26,759

 
$
18,907

Less: Capital expenditures
(7,945
)
 
(10,700
)
Free cash flow
$
18,814

 
$
8,207






MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
 
March 31, 2015
 
December 31, 2014
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
110,230

 
$
94,297

Accounts receivable, net
275,539

 
282,523

Property and equipment, net
117,203

 
119,729

Goodwill and intangibles, net
565,592

 
571,124

Investment in unconsolidated affiliates
18,832

 
20,700

Other assets
116,069

 
128,778

Total Assets
$
1,203,465

 
$
1,217,151

 
 
 
 
Liabilities and Stockholders’ Equity:
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other current liabilities
$
160,821

 
$
159,027

Deferred revenue
303,535

 
300,724

Current portion of long-term debt
10,125

 
9,563

Long-term income taxes payable
37,550

 
54,636

Long-term debt, net, less current portion
200,055

 
201,821

Other long-term liabilities
18,125

 
16,635

Total Liabilities
$
730,211

 
$
742,406

 
 
 
 
Stockholders' Equity
473,254

 
474,745

Total Liabilities and Stockholders' Equity
$
1,203,465

 
$
1,217,151





MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)
 
Three Months Ended March 31, 2015
 
Three Months Ended March 31, 2014
 
As Reported
 
Non-GAAP Adjustments
 
Consolidated Non-GAAP
 
As Reported
 
Non-GAAP Adjustments
 
Consolidated Non-GAAP
Revenue
$
183,693

 
$

 
$
183,693

 
$
198,149

 
$

 
$
198,149

Salaries and related
93,746

 
(4,465
)
a
89,281

 
101,999

 
(8,173
)
a
93,826

Office and general
46,042

 

 
46,042

 
55,207

 
(6,349
)
c
48,858

Marketing and promotion
33,161

 

 
33,161

 
41,413

 

 
41,413

Restructuring and other special charges
20,222

 
(20,222
)
b

 

 

 

   Total operating expenses
193,171

 
(24,687
)
 
168,484

 
198,619

 
(14,522
)
 
184,097

Operating (loss) income
(9,478
)
 
24,687

 
15,209

 
(470
)
 
14,522

 
14,052

Operating margin
(5.2
%)
 
 
 
8.3
%
 
(0.2
%)
 
 
 
7.1
%
Gain on partial sale of equity method investment
8,849

 
(8,849
)
e

 

 

 

Gain on deconsolidation of subsidiaries, net

 

 

 
11,828

 
(11,828
)
d

Interest and other, net
(3,107
)
 
1,284

 f
(1,823
)
 
(1,323
)
 

 
(1,323
)
(Loss) income before income taxes and loss in equity interests
(3,736
)
 
17,122

 
13,386

 
10,035

 
2,694

 
12,729

(Benefit from) provision for income taxes
(13,145
)
 
17,831

g
4,686

 
6,663

 
(2,580
)
h
4,083

Loss in equity interests, net
(220
)
 

 
(220
)
 
(133
)
 

 
(133
)
Net income
9,189

 
(709
)
 
8,480

 
3,239

 
5,274

 
8,513

Net income attributable to noncontrolling interest
(1,019
)
 

 
(1,019
)
 
(1,174
)
 

 
(1,174
)
Net income attributable to Monster Worldwide, Inc.
$
8,170

 
$
(709
)
 
$
7,461

 
$
2,065

 
$
5,274

 
$
7,339

Diluted earnings per share attributable to Monster Worldwide, Inc.:
$
0.09

 
$
(0.01
)
 
$
0.08

 
$
0.02

 
$
0.06

 
$
0.08

Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 Diluted
91,474

 

 
91,474

 
94,416

 

 
94,416


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
Restructuring related charges pertaining to the cost reduction plan announced in February 2015.
c
Charges related to exited facilities primarily associated with the move to our new corporate headquarters in Weston, Massachusetts.
d
Gain on deconsolidation of subsidiaries, net
e
Gain on the sale of the majority of our interest in an equity method investment during Q1 2015.
f
Non-GAAP interest expense related to the debt discount and amortization of the deferred financing costs related to the convertible notes due December 2019.
g
Beginning Q1 2015, the non-GAAP income tax provision is calculated using a fixed long-term projected non-GAAP tax rate of 35% as applied to the non-GAAP pre-tax income. Please refer to the notes to the financial supplement for full explanation of non-GAAP measures.
h
Non-GAAP adjustment includes tax provision for gain on deconsolidation of subsidiaries, net during Q1 2014.




MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)
Three Months Ended March 31, 2015
Careers - North America
 
Careers - International
 
Corporate Expenses
 
Total
Revenue
$
122,392

 
$
61,301

 
 
 
$
183,693

Operating income (loss) - GAAP
$
13,338

 
$
(12,918
)
 
$
(9,898
)
 
$
(9,478
)
Non-GAAP Adjustments
12,508

 
9,798

 
2,381

 
24,687

Operating income (loss) - Non-GAAP
$
25,846

 
$
(3,120
)
 
$
(7,517
)
 
$
15,209

EBITDA
$
26,546

 
$
(7,840
)
 
$
(7,686
)
 
$
11,020

Non-GAAP Adjustments
6,831

 
8,576

 
589

 
15,996

Adjusted EBITDA
$
33,377

 
$
736

 
$
(7,097
)
 
$
27,016

Operating margin - GAAP
10.9
%
 
(21.1
)%
 
 
 
(5.2
)%
Operating margin - Non-GAAP
21.1
%
 
(5.1
)%
 
 
 
8.3
 %
EBITDA margin
21.7
%
 
(12.8
)%
 
 
 
6.0
 %
Adjusted EBITDA margin
27.3
%
 
1.2
 %
 
 
 
14.7
 %
Three Months Ended March 31, 2014
Careers - North America
 
Careers - International
 
Corporate Expenses
 
Total
Revenue
$
127,545

 
$
70,604

 
 
 
$
198,149

Operating income (loss) - GAAP
$
15,811

 
$
(5,289
)
 
$
(10,992
)
 
$
(470
)
Non-GAAP Adjustments
6,112

 
2,159

 
6,251

 
14,522

Operating income (loss) - Non-GAAP
$
21,923

 
$
(3,130
)
 
$
(4,741
)
 
$
14,052

EBITDA
$
25,934

 
$
1,658

 
$
(7,370
)
 
$
20,222

Non-GAAP Adjustments
3,302

 
215

 
2,832

 
6,349

Adjusted EBITDA
$
29,236

 
$
1,873

 
$
(4,538
)
 
$
26,571

Operating margin - GAAP
12.4
%
 
(7.5
)%
 
 
 
(0.2
)%
Operating margin - Non-GAAP
17.2
%
 
(4.4
)%
 
 
 
7.1
 %
EBITDA margin
20.3
%
 
2.3
 %
 
 
 
10.2
 %
Adjusted EBITDA margin
22.9
%
 
2.7
 %
 
 
 
13.4
 %





Exhibit 99.2
FINANCIAL SUPPLEMENT
March 31, 2015





Monster Worldwide, Inc. (together with its consolidated subsidiaries, the “Company,” “Monster,” “we,” “our” or “us”) provides this supplement to assist investors in evaluating the Company’s financial and operating metrics. We suggest that the notes to this supplement be read in conjunction with the financial tables. The financial information included in this supplement contains certain non-GAAP financial measures. These measures should be considered in addition to results prepared in accordance with generally accepted accounting principles (“GAAP”), but are not a substitute for, or superior to, GAAP results. The non-GAAP measures included in this supplement have been reconciled to the most comparable GAAP measure. The Company intends to update the financial supplement on a quarterly basis.

1



Notes to Financial Supplement

Presentation
Stock-based compensation
Non-cash, stock-based compensation expense has been excluded from our non-GAAP financial statements for all periods presented.
“Reallocate to Accelerate”
On February 10, 2015, the Company committed to take a series of cost savings initiatives to reduce costs globally while continuing to support the Company’s new strategy. The initiatives include a global workforce reduction of approximately 300 associates, lease exit costs, impairment of certain assets, and office and general expense controls. Through March 31, 2015, the Company has notified approximately 200 associates in North America and Europe, and has incurred $20.2 million of charges relating to this program. These charges have been excluded from our non-GAAP financial statements for the three months ended March 31, 2015. The Company anticipates additional charges of approximately $3 million to $5 million in the second and third quarters of 2015 in connection with this program.
Facilities costs
During the first quarter of 2014 the Company incurred $6.3 million of charges associated with exited facilities which have been excluded from our non-GAAP financial statements for the three months ended March 31, 2014. The majority of these charges related to facility charges associated with the consolidation of multiple offices into the Company’s new corporate headquarters in Weston, Massachusetts.
Gain on deconsolidation of subsidiaries, net
Prior to January 3, 2014, the Company had a 25% equity investment in a company located in Finland related to a business combination completed in 2001, with the remaining 75% held by Alma Media Corporation (“Alma Media”). Alma Media is a leading media company based in Finland, focused on digital services and publishing in Finland, the Nordic countries, the Baltics and Central Europe. Effective January 3, 2014, the Company expanded its relationship with Alma Media. Monster and Alma Media each contributed several additional entities and businesses into the existing joint venture and formed a significantly larger joint venture where Monster has an equity ownership of 15% with the opportunity to increase ownership up to 20%. The Company also contributed cash of approximately $6.5 million. Following closing, Monster no longer held a controlling interest in its subsidiaries in Poland, Hungary and the Czech Republic and therefore deconsolidated those subsidiaries effective January 3, 2014. The Company accounts for its investment under the equity method of accounting due to the Company’s ability to exert significant influence over the financial and operating policies of the new joint venture, primarily through our representation on the board of directors.
The Company recorded a gain of approximately $14.0 million as a result of the deconsolidation. The gain was measured as the difference between the (a) net fair value of the retained noncontrolling investment and the consideration transferred and (b) the carrying value of the contributed subsidiaries’ net assets of approximately $4.2 million. The fair value of the retained noncontrolling investment was approximately $24.8 million which was determined based on the present value of estimated future cash flows. The Company also recognized $1.8 million of accumulated unrealized currency translation loss related to the net assets of the subsidiaries contributed by Monster.

2



As a result of the deconsolidation, the Company recorded a net gain of approximately $12.0 million during the first quarter of 2014 which has been excluded from our non-GAAP financial statements for the three months ended March 31, 2014.
Gain on partial sale of equity method investment
In 2008, the Company acquired a 50% equity interest in a company located in Australia, CareerOne Pty Limited ("CareerOne"). On March 31, 2015, the Company sold the majority of its 50% equity interest in CareerOne in an arms-length transaction, leaving the Company with a 10% interest. Total cash received from the transaction was $9.1 million, and the sale resulted in recognition of a pre-tax gain of $8.8 million in the first quarter of 2015. This gain has been excluded from our non-GAAP financial statements for the three months ended March 31, 2015. As a result of the sale, the Company no longer has the ability to exercise significant influence over CareerOne. Therefore, effective March 31, 2015, the remaining 10% interest retained by the Company is being accounted for under the cost method.
3.50% Convertible Senior Notes Due 2019
On October 22, 2014, the Company consummated an offering of $143.8 million aggregate principal amount of its 3.50% convertible senior notes due 2019 (the “Notes”), which includes $18.8 million in aggregate principal amount of Notes sold pursuant to the over-allotment option that was previously granted to the initial purchasers of the Notes and exercised by the initial purchasers on October 21, 2014. The Company received net proceeds of $139.0 million from the sale of the Notes, after deducting fees and expenses of $4.7 million. The Notes are unsecured, senior obligations of Monster, that bear interest at a rate of 3.50% per annum, payable in arrears on April 15 and October 15 of each year to holders of record at the close of business on the preceding April 1 and October 1, respectively. The Notes will mature on October 15, 2019, unless converted or repurchased in accordance with their terms prior to such date.
In connection with the offering of the Notes, Monster entered into capped call transactions with an affiliate of one of the initial purchasers. The Company used $16.5 million of the net proceeds to pay for the cost of the capped call transactions, $82.5 million to repay in full the term loan outstanding as of the date of issuance, and $40.0 million to repay a portion loans outstanding under the revolving credit facility.
In accordance with ASC 470-20, Debt with Conversion and Other Options, the Notes were separated into debt and equity components and assigned a fair value. The value assigned to the debt component was the estimated fair value, as of the issuance date, of similar debt without the conversion feature. The difference between the cash proceeds and this estimated fair value represents the value which was assigned to the equity component and was recorded as a debt discount. The debt discount is being amortized using the effective interest method from the date of issuance through the October 15, 2019 maturity date.
The initial debt component of the Notes was valued at $122.8 million, based on the contractual cash flows discounted at an appropriate market rate for non-convertible debt at the date of issuance. The carrying value of the permanent equity component reported in additional paid-in-capital was initially valued at $20.2 million, which is net of $0.7 million of fees and expenses allocated to the equity component.
During the first quarter of 2015, the Company recognized $1.0 million of amortization of the debt discount and $0.2 million of deferred financing fees relating to the Notes which have been excluded from our non-GAAP financial statements for the three months ended March 31, 2015.
Income Tax
Effective the first quarter of 2015, the Company has begun to utilize a fixed long-term projected non-GAAP tax rate for reporting operating results and for planning, forecasting, and analyzing future periods. This change provides better consistency across the interim reporting periods by eliminating the effects of non-recurring and period-specific items. The non-GAAP tax rate is 35%. See detailed discussion in the “Non-GAAP financial measures” section below.
As a result of the gain on the partial sale of the Company’s interest in CareerOne, the Company recognized a tax provision of $4.9 million in the first quarter of 2015. In addition, as a result of settlement of a tax examination during the three months ended March 31, 2015, the Company recorded a tax benefit due to recognition of previously unrecognized tax positions, and reversed accrued interest and penalties on unrecognized tax positions, which, on a net of tax basis, impacted the effective tax rate by $15.8 million. These items have been excluded from our non-GAAP financial statements for the three months ended March 31, 2015.

3



As a result of the gain related to the deconsolidation of our subsidiaries in Poland, Hungary and the Czech Republic, the Company recognized a tax provision of $5.5 million in the first quarter of 2014 which has been excluded from our non-GAAP financial statements for the three months ended March 31, 2014.
Reclassifications
Certain reclassifications of prior year amounts have been made for consistent presentation.
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, operating margin, net income, and diluted earnings per share attributable to Monster Worldwide, Inc. all exclude certain proforma adjustments including: non-cash stock based compensation expense; costs incurred in connection with the Company’s restructuring programs; non-cash impairment charges; amortization of the debt discount and deferred financing costs associated with our 3.50% convertible senior notes due 2019; write-off of deferred financing costs relating to our former credit facility, amended in October 2014; 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; income tax provisions for increased valuation allowances on deferred tax assets; gain on deconsolidation of subsidiaries and tax provisions thereon; gain on partial sale of an equity method investment and tax provisions thereon; and charges related to exited facilities and acquisition related costs.
In the first quarter of the calendar year 2015, the Company began to utilize a fixed long-term projected non-GAAP tax rate for reporting operating results and for planning, forecasting, and analyzing future periods. This change provides better consistency across the interim reporting periods by eliminating the effects of non-recurring and period-specific items. When projecting this long-term rate, the Company evaluated a five-year financial projection comprising the current and the next four years that exclude the income tax effects of the non-GAAP pre-tax adjustments described above, eliminates the effects of non-recurring and period specific items which can vary in size and frequency, and is reflective of the anticipated future geographic mix of income among tax jurisdictions. The projected rate also assumes no new acquisitions or disposals in the five-year period, eliminates the effect of tax valuation allowances, and takes into account other factors including the Company’s current tax structure, its existing tax positions in various jurisdictions and key legislation in major jurisdictions where the Company operates. The non-GAAP tax rate is 35%. The Company intends to re-evaluate this long-term rate on an annual basis or if any significant events that may materially affect this long-term rate occur. This long-term rate could be subject to change for a variety of reasons, which may include (but are not limited to) for example, significant changes in the geographic earnings mix including future acquisition or disposition activity, having less income than anticipated, or fundamental tax law changes in major jurisdictions where the Company operates.
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 operating income or loss before depreciation and amortization, non-cash compensation expense, non-cash impairment charges, and non-cash costs incurred in connection with the Company’s restructuring programs. Adjusted EBITDA excludes the impact of the pro-forma adjustments discussed above. The Company considers EBITDA and Adjusted 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 and Adjusted EBITDA are non-GAAP measures 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 and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities, plus

4



unused borrowings under our credit facility. 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.

5



Monster Worldwide, Inc.
Statements of Operations
(unaudited, in thousands, except per share amounts)
 
Trended Data
Summary P&L Information
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
FY 2014
 
Q1 2015
Careers-North America
$
127,545

 
$
126,160

 
$
124,757

 
$
122,487

 
$
500,949

 
$
122,392

Careers-International
70,604

 
68,281

 
66,463

 
63,716

 
269,064

 
61,301

Revenue
198,149

 
194,441

 
191,220

 
186,203

 
770,013


183,693

Salary and related
93,826

 
94,157

 
93,905

 
95,898

 
377,786

 
89,281

Office and general
42,688

 
37,296

 
39,992

 
38,355

 
158,331

 
34,235

Marketing and promotion
41,413

 
37,377

 
35,109

 
32,493

 
146,392

 
33,161

Restructuring and other special charges

 

 

 

 

 
20,222

Goodwill impairment

 

 

 
325,800

 
325,800

 

Depreciation expense
11,885

 
11,217

 
11,548

 
11,369

 
46,019

 
11,082

Stock-based compensation
8,173

 
9,063

 
6,682

 
11,439

 
35,357

 
4,465

Amortization of intangibles
634

 
618

 
646

 
726

 
2,624

 
725

Operating expenses
198,619

 
189,728

 
187,882

 
516,080

 
1,092,309

 
193,171

 
 
 
 
 
 
 
 
 
 
 
 
Operating (loss) income
(470
)
 
4,713

 
3,338

 
(329,877
)
 
(322,296
)
 
(9,478
)
Gain on partial sale of equity method investment

 

 

 

 

 
8,849

Gain on deconsolidation of subsidiaries, net
11,828

 

 

 

 
11,828

 

Interest and other, net
(1,323
)
 
(1,660
)
 
(1,830
)
 
(3,739
)
 
(8,552
)
 
(3,107
)
Income (loss) before income taxes and equity interests
10,035

 
3,053

 
1,508

 
(333,616
)
 
(319,020
)
 
(3,736
)
Provision for (benefit from) income taxes
6,663

 
1,615

 
1,934

 
(45,503
)
 
(35,291
)
 
(13,145
)
(Loss) income in equity interests, net
(133
)
 
58

 
75

 
(78
)
 
(78
)
 
(220
)
Net income (loss)
3,239

 
1,496

 
(351
)
 
(288,191
)
 
(283,807
)
 
9,189

Net income attributable to noncontrolling interest
(1,174
)
 
(1,462
)
 
(1,318
)
 
(1,528
)
 
(5,482
)
 
(1,019
)
Net income (loss) attributable to Monster Worldwide, Inc.
$
2,065

 
$
34

 
$
(1,669
)
 
$
(289,719
)
 
$
(289,289
)
 
$
8,170

 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings (loss) per share attributable to Monster Worldwide, Inc.
0.02

 

 
(0.02
)
 
(3.31
)
 
(3.29
)
 
0.09

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings (loss) per share attributable to Monster Worldwide, Inc.
0.02

 

 
(0.02
)
 
(3.31
)
 
(3.29
)
 
0.09

 
 
 
 
 
 
 
 
 
 
 
 
Weighted avg. shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic
91,102

 
87,080

 
86,576

 
87,478

 
88,045

 
89,137

Diluted
94,416

 
89,955

 
86,576

 
87,478

 
88,045

 
91,474

 
 
 
 
 
 
 
 
 
 
 
 
Global employees - continuing operations (ones)
4,068

 
4,078

 
4,067

 
4,091

 
4,091

 
3,885

Annualized revenue per average employee
$
196.5

 
$
191.0

 
$
187.8

 
$
182.6

 
$
189.5

 
$
184.2





Monster Worldwide, Inc.
Non-GAAP Statements of Operations
(Unaudited, in thousands, except for per share amounts)
 
Trended Data
Summary P&L Information
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
FY 2014
 
Q1 2015
Careers-North America
$
127,545

 
$
126,160

 
$
124,757

 
$
122,487

 
$
500,949

 
$
122,392

Careers-International
70,604

 
68,281

 
66,463

 
63,716

 
269,064

 
61,301

Revenue
198,149

 
194,441

 
191,220

 
186,203

 
770,013

 
183,693

Salary and related
93,826

 
94,157

 
93,905

 
90,924

 
372,812

 
89,281

Office and general
36,339

 
37,296

 
39,112

 
36,855

 
149,602

 
34,235

Marketing and promotion
41,413

 
37,377

 
35,109

 
32,493

 
146,392

 
33,161

Depreciation expense
11,885

 
11,217

 
11,548

 
11,369

 
46,019

 
11,081

Amortization of intangibles
634

 
618

 
646

 
726

 
2,624

 
726

Operating expenses
184,097

 
180,665

 
180,320

 
172,367

 
717,449

 
168,484

Operating income
14,052

 
13,776

 
10,900

 
13,836

 
52,564

 
15,209

Interest and other, net
(1,323
)
 
(1,660
)
 
(1,830
)
 
(1,378
)
 
(6,191
)
 
(1,823
)
Income before income taxes and equity interests
12,729

 
12,116

 
9,070

 
12,458

 
46,373

 
13,386

Provision for income taxes
4,083

 
3,756

 
3,175

 
4,365

 
15,379

 
4,686

(Loss) income in equity interests, net
(133
)
 
58

 
75

 
(78
)
 
(78
)
 
(220
)
Net income
8,513

 
8,418

 
5,970

 
8,015

 
30,916

 
8,480

Net income attributable to noncontrolling interest
(1,174
)
 
(1,462
)
 
(1,318
)
 
(1,528
)
 
(5,482
)
 
(1,019
)
Net income attributable to Monster Worldwide, Inc.
$
7,339

 
$
6,956

 
$
4,652

 
$
6,487

 
$
25,434

 
$
7,461

Diluted earnings per share attributable to Monster Worldwide, Inc.
$
0.08

 
$
0.08

 
$
0.05

 
$
0.07

 
$
0.28

 
$
0.08

Weighted avg. shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic
91,102

 
87,080

 
86,576

 
87,478

 
88,045

 
89,137

Diluted
94,416

 
89,955

 
89,317

 
90,664

 
91,091

 
91,474





Monster Worldwide, Inc.
Segment Information and Margin Analysis - GAAP and Non-GAAP
(unaudited, in thousands)
 
Trended Data
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
FY 2014
 
Q1 2015
Segment Revenue:
 
 
 
 
 
 
 
 
 
 
 
Careers-North America
$
127,545

 
$
126,160

 
$
124,757

 
$
122,487

 
$
500,949

 
$
122,392

Careers-International
70,604

 
68,281

 
66,463

 
63,716

 
269,064

 
61,301

Total revenue
$
198,149

 
$
194,441

 
$
191,220

 
$
186,203

 
$
770,013

 
$
183,693

Segment operating income (loss): GAAP
 
 
 
 
 
 
 
 
 
 
 
Careers-North America
$
15,811

 
$
21,366

 
$
21,752

 
$
(305,847
)
 
$
(246,918
)
 
$
13,338

Careers-International
(5,289
)
 
(6,974
)
 
(7,551
)
 
(5,315
)
 
(25,129
)
 
(12,918
)
Total operating income (loss) GAAP
$
10,522

 
$
14,392

 
$
14,201

 
$
(311,162
)
 
$
(272,047
)
 
$
420

Corporate expenses GAAP
(10,992
)
 
(9,679
)
 
(10,863
)
 
(18,715
)
 
(50,249
)
 
(9,898
)
Total operating (loss) income GAAP
$
(470
)
 
$
4,713

 
$
3,338

 
$
(329,877
)
 
$
(322,296
)
 
$
(9,478
)
Segment operating income (loss)(1): Non-GAAP
 
 
 
 
 
 
 
 
 
 
 
Careers-North America
$
21,923

 
$
24,980

 
$
24,617

 
$
23,921

 
$
95,441

 
$
25,846

Careers-International
(3,130
)
 
(4,512
)
 
(5,556
)
 
(2,879
)
 
(16,077
)
 
(3,120
)
Total operating income Non-GAAP
$
18,793

 
$
20,468

 
$
19,061

 
$
21,042

 
$
79,364

 
$
22,726

Corporate expenses Non-GAAP
(4,741
)
 
(6,692
)
 
(8,161
)
 
(7,206
)
 
(26,800
)
 
(7,517
)
Total operating income Non-GAAP
$
14,052

 
$
13,776

 
$
10,900

 
$
13,836

 
$
52,564

 
$
15,209

(1) - See notes to financial supplement for further explanation of Non-GAAP measures.




Monster Worldwide, Inc.
Reconciliation of Operating Income (Loss) to EBITDA and Adjusted EBITDA
(unaudited, in thousands)
 
 
Trended Data
Summary P&L Information
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
FY 2014
 
Q1 2015
Revenue
$
198,149

 
$
194,441

 
$
191,220

 
$
186,203

 
$
770,013

 
$
183,693

Operating (loss) income - GAAP
$
(470
)
 
$
4,713

 
$
3,338

 
$
(329,877
)
 
$
(322,296
)
 
$
(9,478
)
Depreciation expense
11,885

 
11,217

 
11,548

 
11,369

 
46,019

 
11,082

Stock-based compensation
8,173

 
9,063

 
6,682

 
11,439

 
35,357

 
4,465

Goodwill impairment

 

 

 
325,800

 
325,800

 

Restructuring non-cash charges

 

 

 
1,000

 
1,000

 
4,226

Amortization of intangibles
634

 
618

 
646

 
726

 
2,624

 
725

EBITDA (1)
$
20,222

 
$
25,611

 
$
22,214

 
$
20,457

 
$
88,504

 
$
11,020

Non-GAAP severance

 

 

 
4,974

 
4,974

 

Facilities costs
6,349

 

 
880

 
500

 
7,729

 

Restructuring expenses, less non-cash items

 

 

 

 

 
15,996

Total non-GAAP Adjustments
6,349

 

 
880

 
5,474

 
12,703

 
15,996

Adjusted EBITDA (1)
$
26,571

 
$
25,611

 
$
23,094

 
$
25,931

 
$
101,207

 
$
27,016

(1) - See notes to financial supplement for further explanation of Non-GAAP measures.




Monster Worldwide, Inc.
Statements of Cash Flows
(unaudited, in thousands)
 
Trended Data
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
FY 2014
 
Q1 2015
Cash flows provided by operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$
3,239

 
$
1,496

 
$
(351
)
 
$
(288,191
)
 
$
(283,807
)
 
$
9,189

Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
12,519

 
11,835

 
12,194

 
12,095

 
48,643

 
11,807

Provision for doubtful accounts
316

 
412

 
562

 
417

 
1,707

 
323

Stock-based compensation
8,173

 
9,063

 
6,682

 
11,439

 
35,357

 
4,465

Deferred income taxes
3,893

 
(491
)
 
53

 
(46,873
)
 
(43,418
)
 
3,933

Non-cash restructuring charges

 

 

 

 

 
4,226

Impairment of investment and indefinite live intangible

 

 

 
2,070

 
2,070

 

Goodwill impairment

 

 

 
325,000

 
325,000

 

Loss (income) in equity interests, net
133

 
(58
)
 
(75
)
 
78

 
78

 
220

Gain on deconsolidation of subsidiaries
(13,647
)
 

 

 

 
(13,647
)
 

Amount reclassified from accumulated other comprehensive income
1,819

 

 

 

 
1,819

 

Gain on partial sale of equity method investment

 

 

 

 

 
(8,849
)
Excess income tax benefit from equity compensation plans
(130
)
 
(69
)
 

 

 
(199
)
 

Changes in assets and liabilities, net of acquisitions:
 
 
 
 
 
 
 
 
 
 
 
Accounts receivable
14,501

 
25,023

 
25,832

 
(24,789
)
 
40,567

 
(255
)
Prepaid and other
(14,838
)
 
6,848

 
(2,855
)
 
(863
)
 
(11,708
)
 
(4,298
)
Deferred revenue
(964
)
 
(26,525
)
 
(29,483
)
 
24,256

 
(32,716
)
 
9,946

Accounts payable, accrued liabilities, and other
3,893

 
(2,634
)
 
(622
)
 
12,372

 
13,009

 
(3,948
)
Total adjustments
15,668

 
23,404

 
12,288

 
315,202

 
366,562

 
17,570

Net cash provided by operating activities
18,907

 
24,900

 
11,937

 
27,011

 
82,755

 
26,759

Cash flows (used for) provided by investing activities:
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures
(10,700
)
 
(11,769
)
 
(8,287
)
 
(9,087
)
 
(39,843
)
 
(7,945
)
Payments for acquisitions, net of cash acquired
(27,005
)
 

 

 

 
(27,005
)
 

Investment in Alma Career Oy
(6,516
)
 

 

 

 
(6,516
)
 

Cash funded to equity investee and other
(729
)
 
113

 
(606
)
 
(941
)
 
(2,163
)
 
976

Capitalized patent defense costs

 
(1,220
)
 
(1,742
)
 
(1,577
)
 
(4,539
)
 
(2,263
)
Cash received from partial sale of equity investment

 

 

 

 

 
9,128

Net cash used for investing activities
(44,950
)
 
(12,876
)
 
(10,635
)
 
(11,605
)
 
(80,066
)
 
(104
)
Cash flows provided by (used for) financing activities:
 
 
 
 
 
 
 
 
 
 
 
Proceeds from borrowings on credit facilities
78,800

 

 
1,500

 
66,100

 
146,400

 
31,600

Payments on borrowings on credit facilities

 
(8,100
)
 

 
(184,200
)
 
(192,300
)
 
(31,600
)
Proceeds from borrowings on term loan

 

 

 
90,000

 
90,000

 

Payments on borrowings on term loan
(1,875
)
 
(2,500
)
 
(2,500
)
 
(84,750
)
 
(91,625
)
 
(2,250
)
Proceeds from convertible notes

 

 

 
143,750

 
143,750

 

Fees paid on the issuance of debt and purchase of capped call

 

 

 
(23,111
)
 
(23,111
)
 
(997
)
Tax withholdings related to net share settlements of restricted stock awards and units
(1,427
)
 
(2,280
)
 
(1,307
)
 
(5,551
)
 
(10,565
)
 
(5,494
)
Repurchase of common stock
(39,653
)
 
(11,864
)
 
(553
)
 

 
(52,070
)
 

Excess income tax benefit from equity compensation plans
130

 
69

 

 

 
199

 

Dividend paid to noncontrolling interest

 
(3,021
)
 

 

 
(3,021
)
 

Net cash provided by (used for) financing activities
35,975

 
(27,696
)
 
(2,860
)
 
2,238

 
7,657

 
(8,741
)
Effects of exchange rates on cash
118

 
1,436

 
(2,461
)
 
(3,723
)
 
(4,630
)
 
(1,981
)
Net increase (decrease) in cash and cash equivalents
10,050

 
(14,236
)
 
(4,019
)
 
13,921

 
5,716

 
15,933

Cash and cash equivalents, beginning of period
88,581

 
98,631

 
84,395

 
80,376

 
88,581

 
94,297

Cash and cash equivalents, end of period
$
98,631

 
$
84,395


$
80,376

 
$
94,297

 
$
94,297

 
$
110,230





Monster Worldwide, Inc.
Consolidated Condensed Balance Sheets
(unaudited, in thousands)
 
Trended Data
 
 March 2014
 
 June 2014
 
 September 2014
 
 December 2014
 
 March 2015
ASSETS
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
98,631

 
$
84,395

 
$
80,376

 
$
94,297

 
$
110,230

Accounts receivable, net
318,615

 
293,732

 
262,434

 
282,523

 
275,539

Prepaid and other
92,717

 
88,127

 
87,353

 
83,326

 
66,785

Total current assets
509,963

 
466,254

 
430,163

 
460,146

 
452,554

Property and equipment, net
126,232

 
126,345

 
121,461

 
119,729

 
117,203

Goodwill
918,672

 
915,024

 
891,870

 
540,621

 
535,790

Intangibles, net
27,849

 
29,186

 
31,327

 
30,503

 
29,802

Investment in unconsolidated affiliates
24,584

 
23,759

 
22,690

 
20,700

 
18,832

Other assets
35,496

 
36,697

 
37,355

 
45,452

 
49,284

Total assets
$
1,642,796

 
$
1,597,265

 
$
1,534,866

 
$
1,217,151

 
$
1,203,465

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other
$
166,270

 
$
160,613

 
$
153,343

 
$
159,027

 
$
160,821

Deferred revenue
341,947

 
315,786

 
281,039

 
300,724

 
303,535

Current portion of long-term debt
212,200

 
201,600

 
10,000

 
9,563

 
10,125

Total current liabilities
720,417

 
677,999

 
444,382

 
469,314

 
474,481

Long-term income taxes payable
54,451

 
55,355

 
56,465

 
54,636

 
37,550

Long-term debt, net, less current portion

 

 
190,600

 
201,821

 
200,055

Other liabilities
53,527

 
57,146

 
59,219

 
16,635

 
18,125

Total liabilities
828,395

 
790,500

 
750,666

 
742,406

 
730,211

Common stock and class B common stock
142

 
142

 
143

 
144

 
146

Additional paid-in capital
2,011,447

 
2,019,350

 
2,026,324

 
2,040,209

 
2,044,732

Accumulated other comprehensive income (loss)
67,691

 
61,916

 
35,685

 
9,245

 
(110
)
Accumulated deficit
(562,806
)
 
(562,772
)
 
(564,441
)
 
(854,160
)
 
(845,990
)
Treasury stock, at cost
(753,873
)
 
(768,050
)
 
(769,676
)
 
(774,940
)
 
(781,041
)
Noncontrolling interest
51,800

 
56,179

 
56,165

 
54,247

 
55,517

Total stockholders' equity
814,401

 
806,765

 
784,200

 
474,745

 
473,254

Total liabilities and stockholders' equity
$
1,642,796

 
$
1,597,265

 
$
1,534,866

 
$
1,217,151

 
$
1,203,465

Memo(1)
 
 
 
 
 
 
 
 
 
 - Net cash
$
(113,569
)
 
$
(117,205
)
 
$
(120,224
)
 
$
(117,088
)
 
$
(99,950
)
(1) - See notes to financial supplement for definitions and calculations of selected financial metrics.

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