Monster Worldwide Reports Third Quarter and Nine Months 2010 Results

NEW YORK, Oct 28, 2010 (BUSINESS WIRE) --

Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the third quarter and nine months ended September 30, 2010. Monster Worldwide completed the acquisition of Yahoo! HotJobs on August 24, 2010 and the Company's third quarter financial results include approximately five weeks of HotJobs' results.

Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, "Our third quarter results affirm that our strategy is working. We continue to gain momentum across all geographies and major vertical markets - resulting in year over year bookings growth of 26%, or 23% excluding HotJobs, and a sequential improvement in deferred revenue. Our business is growing in large part due to our unrivaled global reach, our portfolio of innovative solutions, and our search products powered by our patented 6Sense(R) technology."

The integration process for the HotJobs acquisition is well underway. The combination of Monster and HotJobs expands the Company's audience of active and passive seekers and delivers greater value to its overall customer base.

Third Quarter Results

Bookings, which represent the dollar value of contractual orders received, and are considered by the Company to be a key indicator of future revenues, increased 26% to $235 million. Excluding HotJobs, bookings were $229 million, a 23% increase from $186 million reported in the third quarter of 2009. Historical data on bookings for prior quarters is available in the Company's supplemental financial information.

GAAP revenue of $229 million includes a $1.8 million purchase accounting adjustment related to the HotJobs acquisition. Non-GAAP revenue of $231 million, of which $7.7 million is attributed to HotJobs, increased from revenue of $215 in the third quarter of 2009.

Total Careers revenue on a non-GAAP basis was $196 million. Excluding HotJobs revenue of $7.7 million, total non-GAAP Careers revenue was $188 million, an increase of 4% compared to the third quarter of 2009.

Non-GAAP Careers-North America revenue was $109 million. Excluding HotJobs revenue of $7.7 million, non-GAAP Careers-North America revenue was $101 million, an increase of 6% compared to the third quarter of 2009. Careers-International revenue increased 2% to $87 million compared with $85 million in the prior year period. Internet Advertising & Fees revenue of $35 million was flat compared to the third quarter of 2009.

Consolidated GAAP operating expenses were $234 million, including $5.9 million of HotJobs expenses. The net loss was $5.7 million, or $0.05 per share. This compares to net income of $33 million, or $0.27 per share, in the third quarter of 2009, which included a favorable tax adjustment of $31 million, or $0.26 per share.

The loss for the quarter included pre-tax adjustments of $11 million, or $0.06 per share. These items consisted of a $1.8 million reduction to revenue due to the purchase accounting adjustment related to the acquisition of HotJobs; $8.6 million in transaction and integration costs related to HotJobs; $546 thousand representing severance costs associated with global staff reductions; and a $311 thousand net realized gain on certain auction rate securities. 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.

Monster Worldwide non-GAAP income was $2.0 million, or $0.02 per share. Non-GAAP income excluding HotJobs was $1.0 million, or $0.01 per share, and thus flat on a year over year basis. On a non-GAAP basis and excluding HotJobs, operating expenses were $219 million or a 4% year over year increase compared to the third quarter of 2009.

Cash and cash equivalents were $167 million compared to $187 million in the third quarter of 2009. The decline in cash and cash equivalents was primarily attributable to the completion of the HotJobs acquisition. Capital expenditures increased to $16 million compared to $12 million in the third quarter of 2009.

Monster Worldwide's deferred revenue balance at September 30, 2010 was $313 million. Excluding the contribution from HotJobs, the deferred revenue balance at September 30, 2010 was $299 million, compared with $280 million reported for the second quarter of 2010 and $266 million in the third quarter of 2009.

Nine Months Results

Monster Worldwide reported GAAP revenue of $659 million for the first nine months ended September 30, 2010 compared to $692 million in the same period last year, or a year over year decrease of 5%. Monster Careers revenue declined 6% to $560 million compared with $593 million in the 2009 period. Internet Advertising & Fees reported revenue of $99 million, flat with the prior year period. The Company reported a GAAP net loss of $33 million, or $0.27 per share, compared to net income of $21 million, or $0.17 per share, in the prior year period.

Guidance

The Company offered the following business outlook based on current available information and expectations as of October 28, 2010, exclusive of any future acquisitions or dispositions.

Full Year 2011 Preliminary Expectations

The Company offered preliminary expectations for year over year growth in bookings and revenue, inclusive of HotJobs, in the range of 20 - 25%, with at least 50% of the incremental revenue contributing to operating income. The Company expects to provide more detailed guidance for full year 2011 when it reports Q4 2010 results in early 2011.

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 tobookings, revenue or earningsper share for the fourth fiscal quarter of 2010 or the full 2010 and 2011 fiscal years. 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.

Conference Call and Webcast

Third quarter 2010 results will be discussed on Monster Worldwide's quarterly conference call taking place on October 28, 2010 at 5:00 PM 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 (877) 760-8985 or (706) 758-9636 and reference conference ID# 17956275.

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 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 through the Company's Investor Relations website at http://ir.monster.com.

For a replay of the conference call, please dial (800) 642-1687 or (706) 645-9291 and reference ID# 17956275. This number is valid until midnight on November 4, 2010.

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 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; the strategic restructuring actions initiated in the third quarter of 2007; severance charges related to the targeted global headcount reduction; 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 and HotJobs; realized gains on marketable securities; acquisition and integration-related costs associated with the acquisition of HotJobs; 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.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is defined as net income or loss before interest income or expense, income tax expense or benefit, net gain or loss in equity interests, depreciation and amortization and non-cash compensation expense. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

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.

Bookings represent the dollar value of contractual orders received.

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.

SOURCE: Monster Worldwide, Inc.

Monster Worldwide, Inc.
Investors:
Lori Chaitman, 212-351-7090
Lori.Chaitman@monster.com
or
Media:
Matt Henson, 978-823-2627
Matthew.Henson@monster.com