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|Monster Worldwide Reports Fourth Quarter and Full Year 2009 Results|
|Revenue of $213 Million; Deferred Revenue of $306 Million Increases 15% Over Third Quarter 2009 Balance|
Diluted Loss per Share from Continuing Operations of $0.02; Non-GAAP Diluted Loss Per Share
Non-GAAP Operating Expenses of $213 Million Decline 15% Over Prior Year
Net Cash and Securities Increases $16 Million Sequentially to $250 Million at Year End
Monster Enters into Agreement to Acquire Yahoo! HotJobs and Enters Multi-Year Traffic Agreement
NEW YORK, Feb 03, 2010 (BUSINESS WIRE) -- Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter and full year ended December 31, 2009.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, "We ended the year with a strong sales quarter as our major geographic markets showed signs of continued stability and improvement. Our new resume search product, powered by our precision 6Sense(TM) technology, was successfully introduced to US customers in late October. The proposed acquisition of HotJobs and the traffic agreement with Yahoo! will allow Monster to add relevant job seekers efficiently while significantly expanding our customer base. We are excited about our progress in building Monster as we enter 2010 and are confident we are well positioned to capture additional market share as the global economy recovers."
Fourth Quarter Results
Total revenue declined 27% to $213 million compared with $293 million, on a pro-forma basis, in the comparable quarter of 2008. Monster Worldwide generated 42% of its revenue outside the United States and total revenue was positively impacted by approximately $8 million from foreign exchange rates.
Total Careers revenue decreased 30% to $179 million. Careers-North America generated revenue of $91 million compared with $135 million in the prior year period, a 33% decline. Careers-International revenue decreased 28% to $88 million compared to the prior year period. Internet Advertising & Fees generated revenue of $34 million, a slight increase over the $33 million reported in last year's fourth quarter.
Consolidated operating expenses were $210 million, and the loss from continuing operations was $2 million, or $0.02 per diluted share, compared to income from continuing operations of $29 million, or $0.24 per diluted share, in last year's fourth quarter. Foreign exchange rates negatively impacted consolidated operating expenses by approximately $6 million.
Income from continuing operations for the quarter ended December 31, 2009 included pre-tax pro forma adjustments of $2.7 million, or $0.6 million net of tax. These pre-tax pro forma adjustments consist of the following: a $6.1 million charge resulting from the settlement of litigation and an other-than-temporary impairment relating to the Company's remaining auction rate securities; a $2.9 million charge resulting from global staff consolidation; a $1.7 million charge related to facilities consolidation; and an $8.0 million benefit associated with payments from former officers as part of the litigation settlement related to historical stock option grant practices. These pro forma items are fully described in the "Notes Regarding the Use of Non-GAAP Financial Measures" and are reconciled to the GAAP measure in the accompanying tables.
On a non-GAAP basis, Monster Worldwide recorded $213 million of operating expenses. The loss from continuing operations was $1 million, or $0.01 per diluted share, compared to income of $28 million, or $0.24 per diluted share, in the comparable prior year period.
Cash generated from operating activities was $33 million in the fourth quarter of 2009. The Company's overall net cash position increased $16 million during the quarter. Capital expenditures were $10 million, down from $22 million in last year's fourth quarter and $12 million in the prior quarter of 2009.
Monster Worldwide's deferred revenue balance at December 31, 2009 was $306 million, compared with last year's fourth quarter balance of $414 million, and $266 million reported for the third quarter of 2009.
Monster ended the fourth quarter of 2009 with total available liquidity of $549 million, and net cash and securities of $250 million, compared with net cash and securities of $234 million at the end of the 2009 third quarter.
Monster Enters into Agreement to Acquire Yahoo! HotJobs and Enters Multi-Year Traffic Agreement with Yahoo!
In a separate news release, Monster Worldwide announced that it has entered into a definitive agreement with Yahoo! under which the Company will acquire the assets of Yahoo! HotJobs, a leading online recruitment website. Additionally, Monster and Yahoo! have entered into a multi-year commercial traffic agreement, effective upon the closing of the acquisition, in which Monster will become Yahoo!'s provider of career and job content on the Yahoo! homepage in the United States and Canada. The transaction combines Monster's online career expertise and history of innovation with Yahoo!'s vast network of traffic and provides significant benefits to millions of job seekers and customers globally.
Full Year Results
Monster Worldwide reported total revenue of $905 million for the full year ended December 31, 2009 compared to $1.3 billion last year, a 33% decrease, or 29% excluding the impact of foreign exchange rates. Monster Careers revenue declined to $773 million compared with $1.2 billion in 2008. Internet Advertising & Fees reported revenue of $133 million, a slight increase over the $130 million reported in the prior year. The Company reported income from continuing operations of $19 million, or $0.16 per diluted share, compared to income from continuing operations of $114 million, or $0.94 per diluted share in the prior year period.
Supplemental Financial Information
The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at: http://about-monster.com/sites/default/files/q409_supplement.pdf or through the Company's Investor Relations website at http://ir.monster.com.
Fourth quarter 2009 results will be discussed on Monster Worldwide's quarterly conference call taking place on February 3, 2010 at 5:00 PM ET. To join the conference call, please dial (877) 760-8985 at 4:50 PM ET and reference conference ID# 52168293. For those outside the United States, please dial (706) 758-9636 and reference the same conference ID#. The call will begin promptly at 5:00 PM ET. Individuals can also access Monster Worldwide's quarterly conference call online through the Investor Relations section of the Company's website at http://ir.monster.com. For a replay of the call, please dial (800) 642-1687 or outside the United States dial (706) 645-9291 and reference ID #52168293. This number is valid until midnight on Feb 10, 2009.
About Monster Worldwide
Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster(R), the premier global online employment solution for more than a decade, strives to inspire people to improve their lives. With a local presence in key markets in North America, Europe, Asia and Latin America, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. Monster Worldwide is a member of the S&P 500 index. To learn more about Monster's industry-leading products and services, visit http://www.monster.com.
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, income from continuing operations and diluted earnings per share all exclude certain pro forma adjustments including: net costs associated with the Company's historical stock option grant practices, related litigation and potential fines or settlements; severance costs for former executive officers incurred in the second quarter of 2007; costs related to the measures taken by the Company in response to a security breach in August 2007; the strategic restructuring actions initiated in the third quarter of 2007; severance and facility charges primarily related to the product and technology global reorganization; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR; realized and unrealized losses on available for sale securities; and a net non-cash benefit relating to the reversal of an income tax liability for uncertain tax positions. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company's core business operations and in certain instances, for measuring performance under certain of the Company's incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.
Operating income before depreciation and amortization ("OIBDA") is defined as income from operations before depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash costs incurred in connection with the Company's restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.
Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company's ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company's cash position for the period and should not be considered a substitute for such a measure.
Net cash and securities is 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.
Special Note:Except for historical information contained herein, the statements made in this release, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.Such forward-looking statements involve certain risks and uncertainties, including statements regarding the Company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, 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.
SOURCE: Monster Worldwide, Inc.
Monster Worldwide, Inc.