WESTON, Massachusetts,
July 30, 2015 /PRNewswire/ --
- Second Quarter Financial Highlights:
- Company Exceeds Expectations on All Profitability
Metrics
- Adjusted EBITDA of $29 Million
Increases 13% Year over Year
- Adjusted EBITDA Margin Expands to 16%
- Careers - North America Adjusted EBITDA Margin Expands
to 29%
- Non-GAAP EPS of $0.10
Increases 25% Year over Year; GAAP EPS of ($0.01)
- Revenue of $180 Million
Decreased 2% Year over Year at Constant Currency
- Careers – North America Revenue Has Reached an Inflection
Point
- Cash Flow From Operations of $16
Million
- Company Reiterates Q4 2015 EBITDA Margin Guidance of
18-22%
Monster Worldwide, Inc. (NYSE: MWW) today reported financial
results for the second quarter and six months ended June 30, 2015.
"Our quarterly results exceeded our expectations as we continue
to execute our transformative strategy while improving
profitability," said Tim Yates,
President and Chief Executive Officer. "We are increasingly
confident that our family of new strategic products are additive to
our traditional core products and provide a superior competitive
solution for our customers. Our focus on sales execution in
North America is beginning to
prove effective. Internationally, our Asia Pacific region also continues to perform
well. Europe is lagging
North America and Asia Pacific as we continue to encounter
market and competitive headwinds. We believe that our consolidated
revenue is at or near an inflection point and we remain on track to
achieve our 18-22% EBITDA target exiting this year's fourth
quarter."
During the quarter, we had a number of important business
highlights including:
- "All the Jobs" strategy accelerates new Monster membership with
20% sequential growth
- Monster Social Job Ads expands into Europe, building on strong US launch in
Q1
- New social recruitment solutions gain traction globally, with
increased usage of Monster Twitter Cards, Talent CRM and
TalentBin
- Monster brand has been revitalized, enabling Company to
increase penetration into the critical Millennial audience
Second Quarter 2015 Results
Revenue of $180 million decreased
2% at constant currency compared to last year's second quarter and
7% at actual rates. Revenue in the second quarter of 2014 was
$194 million. Revenue from the
Company's Careers – North America
operations decreased 5% year-over-year. Revenue from Careers –
International increased 3% at constant currency year-over-year and
decreased 11% at actual rates. As of the first quarter of
2015, Internet Advertising & Fees revenue and operating results
are 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 $174 million compared to $190 million in the second quarter of 2014.
Net loss attributable to Monster for the second quarter of 2015 was
$1 million, or $0.01 per share, compared to break-even in the
second quarter of 2014.
Non-GAAP net income attributable to the Company was $9 million, or $0.10 per share, compared to $7 million, or $0.08 per share in the second quarter of 2014.
Non-GAAP operating expenses of $163
million decreased 10% year over year. Adjusted EBITDA margin
of 16% was led by Careers – North
America with a 29% 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
$16 million and free cash flow was
$9 million. Deferred revenue
declined sequentially to $282 million
or 7% compared to $304 million as of
March 31, 2015. The Company
ended the second quarter with total available liquidity of
approximately $139 million.
Six Month Results
Monster Worldwide reported total revenue of $364 million for the first six months ended
June 30, 2015 compared to $393
million in the same period last year, a 2% decrease on a
constant currency basis and 7% at actual rates. Net income
attributable to Monster was $7
million, or $0.08 per share,
compared to $2 million, or
$0.02 per share, in 2014.
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
June 30, 2015, the Company has
incurred $26 million of charges
relating to this program. These charges have been excluded from the
Company's Non-GAAP financial statements for the three and six
months ended June 30, 2015. The
Company anticipates additional charges of approximately
$2 million to $3 million in the
remainder of 2015 in connection with this program.
Guidance
Third quarter 2015 Non-GAAP EPS from continuing operations is
expected to be in the range of $0.09 to
$0.13, which excludes $3 million to
$4 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.
Conference Call and Webcast
Second quarter 2015 results will be discussed on Monster
Worldwide's quarterly conference call on July 30, 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# 1547165. 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# 10069501. This number is
valid until midnight on August 7,
2015.
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 third 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 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
pro-forma adjustments including: non-cash stock based compensation
expense; separation charges associated with the resignation of the
Company's former Chief Executive Officer; 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.
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.
Non-GAAP diluted shares includes the impact, based on the
average share price for the period, of the Company's outstanding
capped call transactions, which are anti-dilutive in GAAP earnings
per share, but are expected to mitigate the dilutive effect of the
Company's 3.50% convertible senior notes due 2019.
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
important indicators of its operational strength which the Company
believes are 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.
MONSTER WORLDWIDE,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
180,414
|
|
$
194,441
|
|
$
364,107
|
|
$
392,590
|
|
|
|
|
|
|
|
|
|
Salaries and
related
|
|
89,915
|
|
103,220
|
|
183,661
|
|
205,219
|
Office and
general
|
|
44,270
|
|
49,131
|
|
90,312
|
|
104,338
|
Marketing and
promotion
|
|
34,240
|
|
37,377
|
|
67,401
|
|
78,790
|
Restructuring and
other special charges
|
|
5,977
|
|
-
|
|
26,199
|
|
-
|
Total operating
expenses
|
|
174,402
|
|
189,728
|
|
367,573
|
|
388,347
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
6,012
|
|
4,713
|
|
(3,466)
|
|
4,243
|
|
|
|
|
|
|
|
|
|
Gain on partial sale
of equity method investment
|
|
-
|
|
-
|
|
8,849
|
|
-
|
Gain on
deconsolidation of subsidiaries, net
|
|
-
|
|
-
|
|
-
|
|
11,828
|
Interest and other,
net
|
|
(3,350)
|
|
(1,660)
|
|
(6,457)
|
|
(2,983)
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes and income (loss) in equity interests
|
|
2,662
|
|
3,053
|
|
(1,074)
|
|
13,088
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes
|
|
2,816
|
|
1,615
|
|
(10,329)
|
|
8,278
|
Income (loss) in
equity interests, net
|
|
292
|
|
58
|
|
72
|
|
(75)
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
138
|
|
1,496
|
|
9,327
|
|
4,735
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
(1,181)
|
|
(1,462)
|
|
(2,200)
|
|
(2,636)
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Monster Worldwide, Inc.
|
|
$
(1,043)
|
|
$
34
|
|
$
7,127
|
|
$
2,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (loss)
earnings per share attributable to Monster Worldwide,
Inc.
|
|
$
(0.01)
|
|
$
-
|
|
$
0.08
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.
|
|
$
(0.01)
|
|
$
-
|
|
$
0.08
|
|
$
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
90,067
|
|
87,080
|
|
89,605
|
|
89,080
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
90,067
|
|
89,955
|
|
93,218
|
|
92,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
$
6,012
|
|
$
4,713
|
|
$
(3,466)
|
|
$
4,243
|
Depreciation and
amortization of intangibles
|
|
11,430
|
|
11,835
|
|
23,237
|
|
24,354
|
Stock-based
compensation
|
|
3,626
|
|
9,063
|
|
8,091
|
|
17,236
|
Restructuring
non-cash expenses
|
|
-
|
|
-
|
|
4,226
|
|
-
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
21,068
|
|
$
25,611
|
|
$
32,088
|
|
$
45,833
|
|
|
|
|
|
|
|
|
|
MONSTER WORLDWIDE,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
2015
|
|
2014
|
Cash flows
provided by operating activities:
|
|
|
|
|
Net income
|
|
$
9,327
|
|
$
4,735
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
23,237
|
|
24,354
|
Provision for
doubtful accounts
|
|
761
|
|
728
|
Stock-based
compensation
|
|
8,091
|
|
17,236
|
Deferred income
taxes
|
|
4,705
|
|
3,402
|
Non-cash
restructuring charges
|
|
4,226
|
|
-
|
(Income) loss in
equity interests, net
|
|
(72)
|
|
75
|
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
|
|
-
|
|
(199)
|
Changes in assets and
liabilities, net of acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
20,978
|
|
39,524
|
Prepaid and
other
|
|
4,121
|
|
(7,990)
|
Deferred
revenue
|
|
(14,181)
|
|
(27,489)
|
Accounts payable,
accrued liabilities and other
|
|
(9,537)
|
|
1,259
|
Total
adjustments
|
|
33,480
|
|
39,072
|
Net cash provided
by operating activities
|
|
42,807
|
|
43,807
|
|
|
|
|
|
Cash flows used
for investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(14,735)
|
|
(22,469)
|
Payments for
acquisitions, net of cash acquired
|
|
-
|
|
(27,005)
|
Investment in Alma
Career Oy
|
|
-
|
|
(6,516)
|
Dividends received
from equity investment and other
|
|
1,648
|
|
(616)
|
Capitalized patent
defense costs
|
|
(2,305)
|
|
(1,220)
|
Cash received from
partial sale of equity method investment
|
|
9,128
|
|
-
|
Net cash used for
investing activities
|
|
(6,264)
|
|
(57,826)
|
|
|
|
|
|
Cash flows (used
for) provided by financing activities:
|
|
|
|
|
Proceeds from
borrowings on credit facilities
|
|
32,100
|
|
78,800
|
Payments on
borrowings on credit facilities
|
|
(32,100)
|
|
(8,100)
|
Payments on
borrowings on term loan
|
|
(4,500)
|
|
(4,375)
|
Fees paid on the
issuance of debt and purchase of capped call
|
|
(1,110)
|
|
-
|
Repurchase of common
stock
|
|
-
|
|
(51,517)
|
Tax withholdings
related to net share settlements of restricted stock awards and
units
|
|
(6,800)
|
|
(3,707)
|
Excess income tax
benefit from equity compensation plans
|
|
-
|
|
199
|
Distribution paid to
minority shareholder
|
|
(10,018)
|
|
(3,021)
|
Net cash (used
for) provided by financing activities
|
|
(22,428)
|
|
8,279
|
|
|
|
|
|
Effects of exchange
rates on cash
|
|
(731)
|
|
1,554
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
13,384
|
|
(4,186)
|
Cash and cash
equivalents, beginning of period
|
|
94,297
|
|
88,581
|
Cash and cash
equivalents, end of period
|
|
$
107,681
|
|
$
84,395
|
|
|
|
|
|
Free cash
flow:
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
42,807
|
|
$
43,807
|
Less: Capital
expenditures
|
|
(14,735)
|
|
(22,469)
|
Free cash
flow
|
|
$
28,072
|
|
$
21,338
|
|
|
|
|
|
MONSTER WORLDWIDE,
INC.
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
Assets:
|
|
June 30,
2015
|
|
December 31,
2014
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
107,681
|
|
$
94,297
|
Accounts receivable,
net
|
|
256,190
|
|
282,523
|
Property and
equipment, net
|
|
114,398
|
|
119,729
|
Goodwill and
intangibles, net
|
|
566,049
|
|
571,124
|
Investment in
unconsolidated affiliates
|
|
19,082
|
|
20,700
|
Other
assets
|
|
108,919
|
|
128,778
|
Total
Assets
|
|
$
1,172,319
|
|
$
1,217,151
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
$
157,229
|
|
$
159,027
|
Deferred
revenue
|
|
281,793
|
|
300,724
|
Current portion of
long-term debt
|
|
10,688
|
|
9,563
|
Long-term income
taxes payable
|
|
37,652
|
|
54,636
|
Long-term debt, net,
less current portion
|
|
198,289
|
|
201,821
|
Other long-term
liabilities
|
|
17,581
|
|
16,635
|
Total
Liabilities
|
|
$
703,232
|
|
$
742,406
|
|
|
|
|
|
Stockholders'
Equity
|
|
469,087
|
|
474,745
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
1,172,319
|
|
$
1,217,151
|
|
|
|
|
|
|
MONSTER WORLDWIDE,
INC.
|
|
UNAUDITED NON-GAAP
STATEMENTS OF OPERATIONS AND RECONCILIATIONS
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
Three Months Ended
June 30, 2014
|
|
|
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 180,414
|
|
$
-
|
|
$ 180,414
|
|
$ 194,441
|
|
$
-
|
|
$ 194,441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
related
|
|
89,915
|
|
(5,626)
|
a
|
84,289
|
|
103,220
|
|
(9,063)
|
a
|
94,157
|
|
Office and
general
|
|
44,270
|
|
-
|
|
44,270
|
|
49,131
|
|
-
|
|
49,131
|
|
Marketing and
promotion
|
|
34,240
|
|
-
|
|
34,240
|
|
37,377
|
|
-
|
|
37,377
|
|
Restructuring and
other special charges
|
|
5,977
|
|
(5,977)
|
b
|
-
|
|
-
|
|
-
|
|
-
|
|
Total
operating expenses
|
|
174,402
|
|
(11,603)
|
|
162,799
|
|
189,728
|
|
(9,063)
|
|
180,665
|
Operating
income
|
|
6,012
|
|
11,603
|
|
17,615
|
|
4,713
|
|
9,063
|
|
13,776
|
|
Operating
margin
|
|
3.3%
|
|
|
|
9.8%
|
|
2.4%
|
|
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other,
net
|
|
(3,350)
|
|
1,252
|
f
|
(2,098)
|
|
(1,660)
|
|
-
|
|
(1,660)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before
income taxes and income in equity interests
|
|
2,662
|
|
12,855
|
|
15,517
|
|
3,053
|
|
9,063
|
|
12,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
2,816
|
|
2,615
|
h
|
5,431
|
|
1,615
|
|
2,141
|
h
|
3,756
|
|
Income in equity
interests, net
|
|
292
|
|
-
|
|
292
|
|
58
|
|
-
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
138
|
|
10,240
|
|
10,378
|
|
1,496
|
|
6,922
|
|
8,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
(1,181)
|
|
-
|
|
(1,181)
|
|
(1,462)
|
|
-
|
|
(1,462)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Monster Worldwide, Inc.
|
|
$
(1,043)
|
|
$ 10,240
|
|
$
9,197
|
|
$
34
|
|
$
6,922
|
|
$
6,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Monster Worldwide, Inc.
|
|
$
(0.01)
|
|
$
0.11
|
|
$
0.10
|
|
-
|
|
$
0.08
|
|
$
0.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
90,067
|
|
807
|
j
|
90,874
|
|
89,955
|
|
-
|
|
89,955
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
Six Months Ended
June 30, 2014
|
|
|
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$ 364,107
|
|
$
-
|
|
$ 364,107
|
|
$ 392,590
|
|
$
-
|
|
$ 392,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
related
|
|
183,661
|
|
(10,091)
|
a
|
173,570
|
|
205,219
|
|
(17,236)
|
a
|
187,983
|
|
Office and
general
|
|
90,312
|
|
-
|
|
90,312
|
|
104,338
|
|
(6,349)
|
c
|
97,989
|
|
Marketing and
promotion
|
|
67,401
|
|
-
|
|
67,401
|
|
78,790
|
|
-
|
|
78,790
|
|
Restructuring and
other special charges
|
|
26,199
|
|
(26,199)
|
b
|
-
|
|
-
|
|
-
|
|
-
|
|
Total
operating expenses
|
|
367,573
|
|
(36,290)
|
|
331,283
|
|
388,347
|
|
(23,585)
|
|
364,762
|
Operating (loss)
income
|
|
(3,466)
|
|
36,290
|
|
32,824
|
|
4,243
|
|
23,585
|
|
27,828
|
|
Operating
margin
|
|
(1.0%)
|
|
|
|
9.0%
|
|
1.1%
|
|
|
|
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
|
|
(6,457)
|
|
2,536
|
f
|
(3,921)
|
|
(2,983)
|
|
-
|
|
(2,983)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes and income (loss) in equity
interests
|
|
(1,074)
|
|
29,977
|
|
28,903
|
|
13,088
|
|
11,757
|
|
24,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes
|
|
(10,329)
|
|
20,446
|
h
|
10,117
|
|
8,278
|
|
(439)
|
g,h
|
7,839
|
|
Income (loss) in
equity interests, net
|
|
72
|
|
-
|
|
72
|
|
(75)
|
|
-
|
|
(75)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
9,327
|
|
9,531
|
|
18,858
|
|
4,735
|
|
12,196
|
|
16,931
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
(2,200)
|
|
-
|
|
(2,200)
|
|
(2,636)
|
|
-
|
|
(2,636)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Monster Worldwide, Inc.
|
|
$
7,127
|
|
$
9,531
|
|
$
16,658
|
|
$
2,099
|
|
$ 12,196
|
|
$
14,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Monster Worldwide, Inc.
|
|
0.08
|
|
$
0.10
|
|
$
0.18
|
|
$
0.02
|
|
$
0.14
|
|
$
0.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
93,218
|
|
(2,418)
|
i
|
90,800
|
|
92,174
|
|
-
|
|
92,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. Additionally, Q2 2015 and YTD 2015
includes $2.0 million of separation costs associated with the
former CEO's resignation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
corporate headquarters in Weston, Massachusetts.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d
|
Gain on
deconsolidation of subsidiaries, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e
|
Gain on partial sale
of an equity method investment during Q1 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f
|
Non-GAAP interest
expense related to the debt discount and amortization of deferred
financing costs related to the Company's convertible notes due
2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
g
|
Non-GAAP adjustment
includes tax provision for gain on deconsolidation of subsidiaries,
net during Q1 2014.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
h
|
Beginning in 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 Non-GAAP
pre-tax income. Prior to Q1 2015, the Non-GAAP income tax
adjustment was calculated using the effective rate of the reporting
period, as adjusted for the effects of certain non-deductible stock
based compensation and provisions for tax valuation
allowances.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
i
|
Non-GAAP adjustment
includes the impact, based on the average share price for the
period, of the Company's outstanding capped call transactions,
which are anti-dilutive in GAAP earnings per share but are expected
to mitigate the dilutive effect of the Company's convertible notes
due 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j
|
Non-GAAP adjustment
includes the dilutive impact of the Company's non-vested stock
under employee compensation plans in Q2 2015 as anti-dilutive on a
GAAP basis.
|
MONSTER WORLDWIDE,
INC.
|
UNAUDITED NON-GAAP
OPERATING SEGMENT INFORMATION
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2015
|
|
Careers -
North America
|
|
Careers -
International
|
|
Corporate
Expenses
|
|
Total
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
119,844
|
|
$
60,570
|
|
|
|
$
180,414
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - GAAP
|
|
$
25,247
|
|
$
(7,484)
|
|
$
(11,751)
|
|
$
6,012
|
Non-GAAP
Adjustments
|
|
1,824
|
|
4,970
|
|
4,809
|
|
11,603
|
Operating income
(loss) - Non-GAAP
|
|
$
27,071
|
|
$
(2,514)
|
|
$
(6,942)
|
|
$
17,615
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
33,811
|
|
$
(2,551)
|
|
$
(10,192)
|
|
$
21,068
|
Non-GAAP
Adjustments
|
|
530
|
|
3,907
|
|
3,540
|
|
7,977
|
Adjusted
EBITDA
|
|
$
34,341
|
|
$
1,356
|
|
$
(6,652)
|
|
$
29,045
|
|
|
|
|
|
|
|
|
|
Operating margin -
GAAP
|
|
21.1%
|
|
(12.4%)
|
|
|
|
3.3%
|
Operating margin -
Non-GAAP
|
|
22.6%
|
|
(4.2%)
|
|
|
|
9.8%
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
28.2%
|
|
(4.2%)
|
|
|
|
11.7%
|
Adjusted EBITDA
margin
|
|
28.7%
|
|
2.2%
|
|
|
|
16.1%
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, 2014
|
|
Careers -
North America
|
|
Careers -
International
|
|
Corporate
Expenses
|
|
Total
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
126,161
|
|
$
68,280
|
|
|
|
$
194,441
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - GAAP
|
|
$
21,366
|
|
$
(6,974)
|
|
$
(9,679)
|
|
$
4,713
|
Non-GAAP
Adjustments
|
|
3,614
|
|
2,462
|
|
2,987
|
|
9,063
|
Operating income
(loss) - Non-GAAP
|
|
$
24,980
|
|
$
(4,512)
|
|
$
(6,692)
|
|
$
13,776
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
31,789
|
|
$
193
|
|
$
(6,371)
|
|
$
25,611
|
Non-GAAP
Adjustments
|
|
-
|
|
-
|
|
-
|
|
-
|
Adjusted
EBITDA
|
|
$
31,789
|
|
$
193
|
|
$
(6,371)
|
|
$
25,611
|
|
|
|
|
|
|
|
|
|
Operating margin -
GAAP
|
|
16.9%
|
|
(10.2%)
|
|
|
|
2.4%
|
Operating margin -
Non-GAAP
|
|
19.8%
|
|
(6.6%)
|
|
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
25.2%
|
|
0.3%
|
|
|
|
13.2%
|
Adjusted EBITDA
margin
|
|
25.2%
|
|
0.3%
|
|
|
|
13.2%
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2015
|
|
Careers -
North America
|
|
Careers -
International
|
|
Corporate
Expenses
|
|
Total
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
242,236
|
|
$
121,871
|
|
|
|
$
364,107
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - GAAP
|
|
$
38,585
|
|
$
(20,402)
|
|
$
(21,649)
|
|
$
(3,466)
|
Non-GAAP
Adjustments
|
|
14,332
|
|
14,768
|
|
7,190
|
|
36,290
|
Operating income
(loss) - Non-GAAP
|
|
$
52,917
|
|
$
(5,634)
|
|
$
(14,459)
|
|
$
32,824
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
60,358
|
|
$
(10,391)
|
|
$
(17,879)
|
|
$
32,088
|
Non-GAAP
Adjustments
|
|
7,360
|
|
12,484
|
|
4,129
|
|
23,973
|
Adjusted
EBITDA
|
|
$
67,718
|
|
$
2,093
|
|
$
(13,750)
|
|
$
56,061
|
|
|
|
|
|
|
|
|
|
Operating margin -
GAAP
|
|
15.9%
|
|
(16.7%)
|
|
|
|
(1.0%)
|
Operating margin -
Non-GAAP
|
|
21.8%
|
|
(4.6%)
|
|
|
|
9.0%
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
24.9%
|
|
(8.5%)
|
|
|
|
8.8%
|
Adjusted EBITDA
margin
|
|
28.0%
|
|
1.7%
|
|
|
|
15.4%
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2014
|
|
Careers -
North America
|
|
Careers -
International
|
|
Corporate
Expenses
|
|
Total
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
253,706
|
|
$
138,884
|
|
|
|
$
392,590
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - GAAP
|
|
$
37,177
|
|
$
(12,263)
|
|
$
(20,671)
|
|
$
4,243
|
Non-GAAP
Adjustments
|
|
9,726
|
|
4,621
|
|
9,238
|
|
23,585
|
Operating income
(loss) - Non-GAAP
|
|
$
46,903
|
|
$
(7,642)
|
|
$
(11,433)
|
|
$
27,828
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
$
57,723
|
|
$
1,851
|
|
$
(13,741)
|
|
$
45,833
|
Non-GAAP
Adjustments
|
|
3,301
|
|
215
|
|
2,833
|
|
6,349
|
Adjusted
EBITDA
|
|
$
61,024
|
|
$
2,066
|
|
$
(10,908)
|
|
$
52,182
|
|
|
|
|
|
|
|
|
|
Operating margin -
GAAP
|
|
14.7%
|
|
(8.8%)
|
|
|
|
1.1%
|
Operating margin -
Non-GAAP
|
|
18.5%
|
|
(5.5%)
|
|
|
|
7.1%
|
|
|
|
|
|
|
|
|
|
EBITDA
margin
|
|
22.8%
|
|
1.3%
|
|
|
|
11.7%
|
Adjusted EBITDA
margin
|
|
24.1%
|
|
1.5%
|
|
|
|
13.3%
|
|
|
|
|
|
|
|
|
|
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