TMP Worldwide Announces Record Second Quarter 2001 Results

NEW YORK, Aug 7, 2001 (BUSINESS WIRE) --

-- Second Quarter Diluted Adjusted EPS of $0.32 Up 45% --

-- Monster.com Posts Record Revenue --

-- Reiterates Full-Year 2001 EPS Guidance of $1.40; 51% Projected Annual Growth --

TMP Worldwide Inc. (NASDAQ: TMPW), the world's leading supplier of human capital solutions, including the pre-eminent Internet career portal Monster.com(R) and the world's largest Yellow Pages advertising agency, today reported record-breaking second quarter 2001 results. Second quarter diluted adjusted earnings per share of $0.32 increased 45% over last year's second quarter results of $0.22. The Company's leading market position and diverse recurring revenue stream contributed to its strong growth.

Andrew J. McKelvey, Chairman and CEO of TMP Worldwide, commented on the quarter, "We are extremely pleased that TMP Worldwide, driven largely by Monster.com, delivered strong results in the second quarter, despite the difficult economic environment. Our geographic diversification, full spectrum of products and services, and ability to retain existing and attract new customers were the key factors driving our performance in the quarter. As with any other U.S. company looking ahead, the economic climate remains our biggest near-term challenge. However, we also believe that this market is providing a unique opportunity for us to continue to invest in TMP Worldwide, and further differentiate our company from our competitors. We are clearly focused on capitalizing on this for 2002 and beyond."

Second Quarter Financial Review

Total commissions and fees for TMP Worldwide increased 11% to $383.6 million for the quarter ended June 30, 2001, up from $346.6 million in the second quarter of 2000. Adjusted net income for the second quarter of 2001 was $36.1 million, up 49% from $24.3 million for the prior year period.

Total Company gains in commissions and fees and net income were led by the strength of Monster.com, the flagship product of TMP's Interactive division. Total Interactive commissions and fees for TMP were $172.6 million for the second quarter, a 69% increase from the $102.2 million reported for the prior year period, as restated for pooling of interests transactions.

Quarter versus quarter comparative results for TMP Worldwide are as follows (all numbers in thousands, except per share amounts):

Operating Highlights 2Q'01 2Q'00(1) %Change ---------------------------------------------------------------------- Total Commissions and Fees $383,606 $346,610 +11% Adjusted Operating Income(2) $ 52,416 $ 34,509 +52% Adjusted EBITDA(2) $ 73,033 $ 47,920 +52% Adjusted Net Income(3) $ 36,085 $ 24,283 +49% Diluted Adjusted EPS(4) $ 0.32 $ 0.22 +45% Diluted Weighted Avg. Shares 113,717 111,474 +2%

The adjusted operating income, EBITDA, net income and diluted EPS amounts discussed herein reflect adjustments to exclude merger and integration costs incurred in connection with companies acquired using the pooling of interests method of accounting and the tax benefits thereon (please see the Endnotes). Merger and integration costs for the quarter ended June 30, 2001 were $21.5 million versus $13.6 million for the second quarter of 2000. Such costs include transaction costs for the mergers completed in the respective year-to-date periods, amortization of employee stay bonuses, separation pay and office and management integration costs.

A higher operating margin in Interactive operations and the Company's focus on productivity improvements contributed to a 52% increase in adjusted operating income to $52.4 million and a 52% increase in adjusted EBITDA to $73.0 million. The adjusted operating profit margin increased to 13.7% for the second quarter, compared to 10.0% for the same period last year. Quarter versus quarter comparative results for TMP Worldwide commissions and fees by operating division, including their Interactive components, are as follows (in thousands):

Commisions & Fees 2Q'01 2Q'00 %Change Traditional Interactive Total Total on Total ---------------------------------------------------------------------- Monster.com $ - $ 142,189 $ 142,189 $ 86,499 +64% Monstermoving.com - 3,621 3,621 2,088 +73% Advertising & Communications 42,971 6,263 49,234 64,164 -23% eResourcing 111,116 18,562 129,678 119,813 +8% Executive Search 32,517 9 32,526 48,345 -33% Directional Marketing 24,450 1,908 26,358 25,701 +3% Total $ 211,054 $172,552 $ 383,606 $346,610 +11%

Jim Treacy, Executive Vice President and COO of TMP Worldwide, said, "Our continued growth in Interactive commissions and fees over last year's comparable quarter is indicative of the market's increasing demand for online recruiting products and services. As corporations reevaluate the effectiveness of their recruitment spending in reaction to the slowing economy, our superior targeting, pricing and speed of delivery, relative to traditional media, becomes increasingly attractive to existing and potential customers. We believe that this fundamental disparity will continue to fuel the industry's secular shift from traditional to online recruitment advertising. This is particularly the case in today's market, where companies are faced with ongoing shortages of skilled workers worldwide, and the acute need to recruit faster, better and more cost-effectively, simply to maintain their current professional workforce levels."

"However, while we were very satisfied with our results this quarter, we are clearly feeling the impact of the weak U.S. economy, particularly in our traditional lines of business. As a result, we continued to take a number of actions to maintain a flexible cost structure, which will improve our business and enable us to react quickly to further changes in market conditions. These actions included a reduction in advertising spending and an acceleration of our integration efforts for acquisitions, where we are able to utilize our sales and infrastructure synergies and further improve our productivity. We will aggressively continue our efforts to streamline our operations and improve our cost efficiencies for the remainder of 2001. We are also similarly committed to the opportunistic use of our capital to further build-out our market-leading human capital franchise. As a result, our leaner cost structure, combined with our increased product and sales capacity from continued investments in strategic initiatives, should support and enhance our future growth for many years to come," added Mr. Treacy.

Monster.com's strong growth resulted in commissions and fees of $142.2 million, a 64% increase over the $86.5 million reported in the second quarter of 2000. In addition, Monster.com's adjusted operating profit was $36.1 million, up from $15.8 million in the second quarter 2000, resulting in an adjusted operating margin of 25.4%. Monstermoving.com also reported solid organic growth, as its commissions and fees increased 73% to $3.6 million from $2.1 million for the same period last year, due to the addition of new clients, increased website traffic and successful cross-selling efforts with Directional Marketing.

Advertising & Communications' total commissions and fees, including its Interactive business, were $49.2 million for the second quarter of 2001, a 23% decrease from $64.2 million for the second quarter of 2000. Commissions and fees in Advertising & Communications' traditional operations were $43.0 million for the second quarter of 2001, down from $56.9 million in the second quarter of 2000, a decline of 24%. Despite the lower commissions and fees, this division returned to profitability in the quarter as a result of strategic cost-cutting measures. While Advertising & Communications continued to be adversely impacted by the weak U.S. economy, it did continue to outperform the traditional marketplace, as demonstrated by the 28% decline in The Conference Board's Help Wanted Index during the second quarter of 2001.

eResourcing continued to expand its geographic reach, product mix and sector coverage in the United States, Europe and Asia through a number of strategic acquisitions which provide it with a powerful platform for continued growth on a worldwide basis. Total commissions and fees for the division, including its Interactive business, increased to $129.7 million, up 8% from $119.8 million for the same period last year. eResourcing's traditional business generated $111.1 million in commissions and fees during the second quarter, compared to $116.1 million reported in the second quarter of last year, as the slowdown in the economy adversely impacted permanent placement revenues in the U.S. However, eResourcing's Interactive contribution increased significantly, generating commissions and fees of $18.6 million, up 400% over the same period last year and 53% sequentially over the first quarter of 2001. This increase reflects the benefit of the synergies between Monster.com's resume database and proprietary Web mining tools. In fact, 44% of eResourcing's placements during the second quarter were sourced from Monster.com's resume database.

Executive Search reported commissions and fees of $32.5 million in the second quarter of 2001, down 33% from the second quarter of 2000, also reflecting the continued impact of the slowing U.S. economy. However, while commissions and fees declined, strategic cost cutting measures in this division helped it to increase its profitability in the second quarter.

Directional Marketing's commissions and fees, including its Interactive business, were $26.4 million for the second quarter of 2001, up 3% from the $25.7 million reported in the second quarter of 2000, as several Yellow Page directory closings moved from the first quarter to the second quarter of 2001.

Consolidated commissions and fees as a percent of related billings for the quarter ended June 30, 2001 were 57.2% compared to 51.0% for the prior year period. This increase reflects the growth of the Company's Interactive businesses, where TMP retains a greater portion of the amount billed to the client.

Monster.com Traffic Continues at Record Pace

During the second quarter of 2001, Monster.com continued to report record-breaking traffic figures, further building its leadership position in the online human capital market. In June 2001, Monster.com received over 6.5 million unique visitors and a reach of 7.3%, according to independent research conducted by Media Metrix. Monster.com's "power ranking5" of 227.0 and an all-time high 58.2% of "career eyeball minutes6" also validate its brand strength.

Embracing its 'Intern to CEO' strategy, Monster.com once again emerged with new offerings that are designed to pave the road of success for college students and young professionals. Monster firmly positioned itself in the second quarter to increase its share in the entry-level segment of the market with MonsterTRAK, the definitive career resource for college students and alumni, which provides these job seekers with more entry-level, part-time, and internship postings than any other career management entity on or off-line. This new product offering is further enhanced by the acquisitions of CollegeLink.com and FastWeb, which are pivotal in providing college-bound high school students with comprehensive resources for career and education information.

Jeff Taylor, CEO of Monster.com, stated, "Monster.com has delivered on its promise to become a global brand that assists job seekers through every step of their lifelong career development. Despite our tactical decision to reduce marketing and promotional spending in order to redirect a portion of this spending towards new product development and the continued build-out of our European sales staff, Monster's consumer awareness and loyalty has grown to record levels. In fact, Monster.com has become one of the most highly recognizable brands in the United States. Brandweek magazine recently named Monster.com the 165th top brand in the listing of 'America's Top 2000 Brands,' up from a ranking of 440 last year. Our continued focus on innovation and product development further paid off, as Yahoo! Internet Life Magazine selected Monster.com as the best site to 'Get a Job' in its '50 Most Incredibly Useful Sites,' July 2001 issue. These achievements and others consistently validate our global brand strategy."

TMP's Strong Balance Sheet and Cash Flow Provide Flexibility to Fund Growth Initiatives

As of June 30, 2001, TMP had $540.8 million in cash and cash equivalents and $64.2 million in debt on the balance sheet, resulting in a net cash position of $476.6 million. This is $55.6 million less than the net cash position of $532.2 million as of March 31, 2001, as adjusted for pooling of interests transactions completed during the quarter ended June 30, 2001. The decrease in cash reflects $71.0 million in acquisition and capital spending activity during the quarter and was partially offset by the Company's continued focus on working capital management. Days Sales Outstanding ("DSOs") improved to 62 during the second quarter of 2001, compared to 67 for the second quarter of 2000. The Company's cash flow from operations was $23.2 million for the second quarter of 2001, compared to $50.8 million for the second quarter of 2000, and was $79.0 million for the six months ended June 2001, compared to $4.7 million for the same period last year, reflecting improved cash management initiatives, which began in the second quarter of 2000.

Mr. Treacy stated, "Once again, we did an excellent job of managing our working capital and preserving our financial flexibility to strategically invest in our market-leading brands and businesses. As a result, we seized the opportunity provided by the weak U.S. economy to exercise our financial leverage and acquire targeted companies at attractive valuations. By investing in select companies and initiatives to expand and enhance our product offerings, sales forces and client lists, we are putting our cash to work at much higher after-tax returns than available from current market interest rates. Looking ahead, we will continue to pursue similar internal and external growth initiatives which we believe will enhance our growth for the short-term, and most importantly, increase our market share over the long-term and build shareholder value."

Strategic Acquisitions and Other Highlights

During the second quarter of 2001, TMP completed a series of acquisitions designed to enhance its product and market reach and expand its global presence.

Monster.com

• In May, FlipDog.com, a privately held leading career site, was acquired from WhizBang! Labs, Inc. FlipDog.com brings more than 600,000 job postings from more than 50,000 employers to the Monster.com portfolio. FlipDog.com's use of state-of-the-art information extraction technology enhances TMP's suite of products and services.

• In June, TMP acquired CollegeLink.com and FastWeb. These acquisitions are designed to strengthen Monster.com as a lifelong career and information resource. CollegeLink.com is an online destination for college-bound students and their families who are seeking guidance and information on the college admission process. FastWeb, a category-leading website, offers scholarship opportunities, college search functions and direct marketing products.

• In July, TMP completed the acquisition of Jobline International AB. As one of Europe's leading online professional recruitment companies, Jobline will further solidify Monster.com's presence in Europe by increasing brand recognition, site traffic and resume postings. Jobline conducts online recruitment operations in France, Spain, Italy, Germany, Sweden, Norway, Denmark, Switzerland and Finland and provides Monster.com with new platforms for growth in these countries.

eResourcing

• In the second quarter, TMP completed 10 acquisitions in the eResourcing division. These acquisitions are intended to strengthen TMP's professional-level recruitment and contracting sector coverage and increase its global distribution channels. TMP acquired two firms in Asia, two in North America and six in Europe. Of particular note are:

• The Melville Craig Group, Scotland's largest recruitment and contracting firm,

• Legal FlexForce, the leading legal contracting business in Continental Europe and

• Soler Search & Consulting AS, one of the largest recruiting and contracting companies in Norway, which has particular strengths in information technology and finance, and which enhances TMP's service offerings in Sweden, Finland and Denmark.

Advertising & Communications

• In April, TMP acquired Hunter Advertising, in Malaysia, expanding its presence in the region.

• In June, TMP acquired the Hamel Group in the U.S., which increases TMP's expertise in Biotech and Healthcare recruitment advertising, two sectors that are growing despite the U.S. economic slowdown.

Other Highlights

• In June, TMP Worldwide was added to the S&P 500 Index. The Company believes its inclusion in the index is a testament to the valuable role that TMP plays in today's global economy by revolutionizing the recruiting market and facilitating the process of matching employers' high demand for quality employees with the limited supply of available human capital.

• On June 29, TMP announced that it had entered into an agreement to acquire HotJobs.com, Ltd., a leading recruitment company whose services include the HotJobs.com consumer job board. TMP intends to maintain HotJobs.com as a stand-alone site and brand. The acquisition is expected to be completed by the fourth quarter of 2001.

Six Month Results

TMP reported total commissions and fees of $760.8 million for the six months ended June 30, 2001, compared to $648.2 million for the year-earlier period, an increase of 17%. Total Interactive commissions and fees were $333.3 million, up $151.5 million or 83% versus $181.8 million for the same period last year.

Monster.com's commissions and fees increased 80% to $275.4 million for the six months ended June 30, 2001, from $153.0 million for the six months ended June 30, 2000, primarily reflecting increased demand from new and existing clients, as well as the addition of new products and services.

Monstermoving.com's commissions and fees increased 73% to $7.2 million for the six months ended June 30, 2001, from $4.2 million for the six months ended June 30, 2000, reflecting the addition of new clients, increased website traffic and successful cross-selling efforts with Directional Marketing.

Advertising & Communications' total commissions and fees were $109.1 million, representing a decrease of 12% for the six months ended June 30, 2001, compared to $124.6 million for the prior year period, reflecting the general decline in newspaper classified advertising during the U.S. economic slowdown, partially offset by growth in creative and value-added services.

eResourcing's total commissions and fees were $255.3 million for the six months ended June 30, 2001, representing an increase of 12% compared to $227.7 million for the prior year period. This increase reflects acquisition activity and the continued strong demand for contract professionals, primarily for information technology and mid-level management, and is partially offset by a decline in permanent placement fees in reaction to the weak U.S. economy.

Executive Search's total commissions and fees were $64.0 million for the six months ended June 30, 2001, a decrease of 27% compared to $87.4 million for the prior year, reflecting the continued impact that the slowdown in the U.S. economy is having on executive level search bookings, particularly in the U.S. financial services and information technology sectors.

Directional Marketing's total commissions and fees were $49.7 million for the six months ended June 30, 2001, a decrease of 3% versus $51.4 million for the prior year period, reflecting lower commissions paid by Yellow Page publishers and higher discounts to major clients, partially offset by the effects of rate increases, and the addition of new clients.

Excluding merger and integration costs of $41.7 million for the six months ended June 30, 2001 and $22.3 million for the six months ended June 30, 2000, which were incurred in connection with companies acquired using the pooling of interests method of accounting, the Company reported an adjusted operating income of $83.9 million for the six months ended June 30, 2001, compared to $58.2 million for the prior year period. This 44% increase primarily reflects the growing profitability of Monster.com and cost reduction efforts throughout the entire Company. Consequently, the adjusted operating profit margin for the six months ended June 30, 2001 was 11.0% compared to 9.0% for the period ended June 30, 2000.

Adjusted EBITDA for the six months ended June 30, 2001 was $119.2 million versus $84.8 million for the prior year, representing an increase of 40%. Adjusted net income increased 41% to $56.4 million for the six months ended June 30, 2001, compared to $40.1 million for the prior year period. Diluted adjusted earnings per share were $0.50 for the six months ended June 30, 2001 versus $0.37 for the prior year, a 35% increase.

Business Outlook - TMP Reaffirms Optimistic Outlook for 2001

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. These statements include the anticipated impact of mergers, acquisitions and other business combinations completed before August 7, 2001, but not the effects of potential transactions after this date. These statements also exclude merger and integration expenses and restructuring costs incurred in connection with companies acquired using the pooling of interests method of accounting. Note that quarterly results are anticipated to reflect the seasonal nature of our business.

Due to its extensive portfolio of online and offline services, broad diversification of customers and geographic markets, and strong balance sheet, TMP believes that it will continue to report solid top-line revenue and bottom-line earnings per share growth in 2001, as compared to 2000.

Bart Catalane, Chief Financial Officer of TMP Worldwide, said, "Given the current operating environment, we remain cautiously optimistic about our outlook for the remainder of the year. At this time, we are comfortable with consensus analyst estimates of adjusted diluted earnings per share of $1.40 for the full year 2001, which represents a 51% increase from the adjusted diluted earnings per share of $0.93 in 2000, as restated for pooling of interests transactions closed during the quarter ended June 30, 2001. We anticipate adjusted diluted earnings per share of $0.44 for the third quarter ended September 30, 2001 and $0.46 for the fourth quarter ended December 31, 2001.

"Consistent with previous guidance, the Company expects Interactive commissions and fees for 2001 to be in the range of $715 million to $735 million. However, due to the impact of the economic slowdown on several of the traditional lines of business, specifically, Executive Search and Advertising & Communications, total Company commissions and fees for 2001 are now expected to be in the range of $1.56 billion to $1.58 billion. This still represents an increase of approximately 11% to 12% over the pooling restated full year 2000 commissions and fees of $1.4 billion. Again, our broad customer and geographic diversification and extensive product offerings should enable us to achieve this top-line growth," added Mr. Catalane.

Mr. Catalane continued, "Total operating expenses for 2001, including approximately $25 million of amortization of intangibles and $190 million to $210 million of marketing and promotion expenses, but excluding merger and integration expenses, are expected to be between 84% and 86% of total company commissions and fees. As a result, we now anticipate that total 2001 expenses will be 1% to 2% lower than previously expected, again, primarily as a result of reduced Monster.com brand spending. Because of the continued success of our branding efforts and reduced media costs, we believe that we can trim our marketing budget for Monster.com."

Mr. Catalane concluded, "The Company expects net interest income to be approximately $1.5 million per quarter for the third and fourth quarters of 2001. This reflects the decline in market interest rates and the Company's use of cash to support its aggressive acquisition strategy, partially offset by increased profits, particularly at Monster.com, and the positive effects of aggressive cash management initiatives across the Company."

About TMP Worldwide

Founded in 1967, TMP Worldwide Inc., with more than 9,500 employees in 32 countries, is the online recruitment leader, the world's largest Recruitment Advertising agency network, and one of the world's largest Executive Search and Executive Selection agencies. TMP Worldwide, headquartered in New York, is also the world's largest Yellow Pages advertising agency and a provider of direct marketing services. The Company's clients include more than 90 of the Fortune 100 and more than 480 of the Fortune 500 companies. In June 2001, TMP Worldwide was added to the S&P 500 Index. More information about TMP Worldwide is available at www.tmp.com

Monster.com, headquartered in Maynard, Mass., the flagship brand of the Interactive Division of TMP Worldwide, is the leading global careers website, recording over 25 million unique visits during the month of June 2001, according to independent research conducted by I/PRO. Monster.com connects the most progressive companies with the most qualified career-minded individuals, offering innovative technology and superior services that give them more control over the recruiting process. The Monster.com global network consists of local content and language sites in the United States, United Kingdom, Australia, Canada, the Netherlands, Belgium, New Zealand, Singapore, Hong Kong, France, Germany, Ireland, Spain, Luxembourg, India, Italy, Sweden, Norway, Denmark, Switzerland and Finland. More information about Monster.com is available at www.monster.com or by calling 1-800-MONSTER.

Condensed consolidated statements of operations for the three months and six months ending June 30, 2001 and 2000 and condensed consolidated balance sheets for March 31 and June 30, 2001 and December 31, 2000 for TMP Worldwide Inc. and subsidiaries follow. For an investment kit, please contact Dan Bustillos at (212) 351-7084 or visit www.tmp.com.

Second quarter 2001 results will be discussed on TMP Worldwide's quarterly conference call taking place on August 8, 2001. To join the conference call, please dial in on 1-888-849-9225 at 8:20 AM E.D.T. For those outside the United States, please call in on 1-212-896-6107. The call will begin promptly at 8:30 AM E.D.T. Individuals can also access TMP Worldwide's quarterly conference call through Yahoo! Finance at www.yahoo.com and the investor information section of the Company's website at www.tmp.com. Interactive Metrics for TMP Worldwide and Monster.com are available at www.monster.com or www.tmp.com.

Endnotes

1. Prior periods' results have been retroactively restated to reflect the effects of acquisitions accounted for as pooling of interests that were completed prior to June 30, 2001.
2. Operating profit and EBITDA have been adjusted to exclude the effects of merger and integration costs of $21.5 million and $13.6 million for the quarters ended June 30, 2001 and 2000, respectively.
3. Net income has been adjusted to exclude the effects of merger and integration costs incurred, net of the tax benefits thereon, of $16.3 million and $12.2 million for the quarters ended June 30, 2001 and 2000, respectively.
4. Available to common and Class B shareholders after excluding merger and integration costs, net of the tax benefits thereon.
5. "Power ranking" is the result of Media Metrix "audience reach" multiplied by Media Metrix "unique pages per visitor per month" and therefore indicates a website's recognition by and usefulness to consumers (who in Monster.com's case are job seekers).
6. "Career eyeball minutes" is the result of Media Metrix "unique visitors" multiplied by Media Metrix "average minutes per visitor per month" and therefore indicates a website's share of total career or job seeker audience that month.

Special Note: This press release includes forward-looking statements based on current management expectations. Factors that could cause future results to differ from these expectations include the following: risks associated with acquisitions, competition and seasonality. Additional factors are described in the company's reports filed with the Securities and Exchange Commission.

TMP WORLDWIDE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30 (in thousands, except per share amounts) (unaudited) 2001 2000* ---- ----- Gross billings: Interactive $189,658 $113,670 Advertising & Communications 185,976 265,320 eResourcing 117,087 117,224 Executive Search 32,517 48,345 Directional Marketing 145,621 135,694 --------------------- ------- ------- Total gross billings $670,859 $680,253 ===================== ======= ======= Commissions & fees: Interactive $172,552 $102,219 Advertising & Communications 42,971 56,863 eResourcing 111,116 116,102 Executive Search 32,517 48,345 Directional Marketing 24,450 23,081 --------------------- ------- ------- Total commissions & fees 383,606 346,610 ------------------------ ------- ------- Operating expenses: Salaries & related 195,802 187,553 Office & general 73,154 80,025 Marketing & promotion 56,017 39,846 Merger & integration 21,533 13,649 Amortization of intangibles 6,217 4,677 --------------------------- ------- ------- Total operating expenses 352,723 325,750 --------------------------- ------- ------- Operating income 30,883 20,860 --------------------------- ------- ------- Other income (expense): Interest income, net 4,329 4,761 Other, net 1,490 (339) ---------------------------- ------- ------- Total other income (expense), net 5,819 4,422 ----------------------------- ------- ------- Income before provision for income taxes and minority interests 36,702 25,282 Provision for income taxes 17,254 13,394 ----------------------------- ------- ------- Income before minority interest 19,448 11,888 Minority interests (379) (243) ----------------------------- ------- ------- Net income applicable to common and Class B common stockholders 19,827 12,131 ============================= ======= ======= Adjusted net income: Net income $19,827 $12,131 Merger & integration costs 21,533 13,649 Tax benefit of merger & integration costs (5,275) (1,497) ----------------------------- ------- ------- Adjusted net income $36,085 $24,283 ============================= ======= ======= * Restated to reflect pooling of interests transactions completed during the six months ended June 30, 2001. TMP WORLDWIDE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30 (in thousands, except per share amounts) (unaudited) 2001 2000* ---- ----- Net income per common and ========================= Class B common share: ============================== Basic $0.18 $0.12 ============================== =========== ============ Diluted $0.17 $0.11 ============================== =========== ============ Adjusted net income per common and ================================== Class B common share: ============================== Basic $0.33 $0.23 ============================== =========== ============ Diluted $0.32 $0.22 ============================== =========== ============ Weighted average shares outstanding: ==================================== Basic 109,024 104,988 ============================== =========== ============ Diluted 113,717 111,474 ============================== =========== ============ Adjusted E B I T D A(a) $73,033 $47,920 ============================== =========== ============ * Earnings before interest, income taxes, depreciation and amortization, and adjusted to exclude the effects of merger & integration costs for poolings of interests. EBITDA is presented to provide additional information about the Company's ability to meet its future debt service, capital expenditures and working capital requirements, and is one of the measures which determines the Company's ability to borrow under its credit facility. EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles, or as a measure of the Company's profitability or liquidity. TMP WORLDWIDE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30 (in thousands, except per share amounts) (unaudited) 2001 2000* ---- ----- Gross billings: Interactive $372,388 $203,524 Advertising & Communications 417,300 524,993 eResourcing 233,914 224,150 Executive Search 64,006 87,352 Directional Marketing 275,347 268,869 ---------------------------------------- ------------ Total gross billings $1,362,955 $1,308,888 ======================================== ============ Commissions & fees: Interactive $333,267 $181,770 Advertising & Communications 92,518 111,237 eResourcing 224,602 221,504 Executive Search 64,006 87,352 Directional Marketing 46,408 46,381 ---------------------------------------- ------------ Total commissions & fees 760,801 648,244 ---------------------------------------- ------------ Operating expenses: Salaries & related 394,325 356,212 Office & general 159,799 154,227 Marketing & promotion 110,694 70,460 Merger & integration 41,726 22,323 Amortization of intangibles 12,105 9,162 ---------------------------------------- ------------ Total operating expenses 718,649 612,384 ---------------------------------------- ------------ Operating income 42,152 35,860 ---------------------------------------- ------------ Other income (expense): Interest income, net 9,375 5,994 Other, net (600) (252) ---------------------------------------- ------------ Total other income (expense), net 8,775 5,742 ---------------------------------------- ------------ Income before provision for income taxes and minority interests 50,927 41,602 Provision for income taxes 25,966 21,088 ---------------------------------------- ----------- Income before minority interests 24,961 20,514 Minority interests (560) (324) ---------------------------------------- ----------- Net income applicable to common and Class B common stockholders 25,521 20,838 ======================================== =========== Adjusted net income: Net income $25,521 $20,838 Merger & integration costs 41,726 22,323 Tax benefit of merger & integration costs (10,881) (3,055) ---------------------------------------- ----------- Adjusted net income $56,366 $40,106 ======================================== =========== * Restated to reflect pooling of interests transactions completed during the six months ended June 30, 2001. TMP WORLDWIDE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30 (in thousands, except per share amounts) (unaudited) 2001 2000* ---- ----- Net income per common and ========================= Class B common share: ====================== Basic $0.24 $0.20 ===== ===== ===== Diluted $0.23 $0.19 ======= ===== ===== Adjusted net income per common and ================================== Class B common share: ===================== Basic $0.52 $0.39 ===== ===== ========== Diluted $0.50 $0.37 ======= ===== ========== Weighted average shares outstanding: ==================================== Basic 108,573 101,773 ===== ======= ========== Diluted 113,224 109,684 ======= ======= ========== Adjusted E B I T D A(a) $119,168 $84,849 ======================= ======= ========== * Earnings before interest, income taxes, depreciation and amortization, and adjusted to exclude the effects of merger & integration costs for poolings of interests. EBITDA is presented to provide additional information about the Company's ability to meet its future debt service, capital expenditures and working capital requirements, and is one of the measures which determines the Company's ability to borrow under its credit facility. EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles, or as a measure of the Company's profitability or liquidity. TMP WORLDWIDE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) June 30, 2001 March 31, 2001* Dec. 31, 2000* ------------- --------------- -------------- Assets: Cash and cash equivalents $540,791 $566,962 $576,265 Accounts receivable, net 569,293 577,290 604,849 Property and equipment, net 170,167 161,698 153,224 Intangibles, net 618,912 548,213 530,798 Other assets 257,462 206,885 217,809 ------------- ------------- ------------ ----------- Total Assets $2,156,625 $2,061,048 $2,082,945 ============= ============= ============ =========== Liabilities and Stockholders' Equity: Accounts payable and accrued expenses $695,756 $685,123 $717,516 Accrued integration and restructuring 31,036 31,128 28,014 Deferred commissions and fees 157,255 160,880 155,796 Other liabilities 55,419 47,071 56,213 Debt 64,225 34,722 46,235 ------------------- ------------- ----------- ----------- Total Liabilities 1,003,691 958,924 1,003,774 Stockholders' Equity 1,152,934 1,102,124 1,079,171 -------------------- -------------- ----------- ----------- Total Liabilities and Stockholders' Equity $2,156,625 $2,061,048 $2,082,945 ==================== ============== =========== =========== * Reflects pooling of interests transactions completed during the six months ended June 30, 2001.

CONTACT: BSMG Worldwide Andrea Retzky, 212/445-8247 aretzky@bsmg.com or TMP Worldwide Dan Bustillos, 212/351-7084 dan.bustillos@tmp.com