| Symbol | Last | Change |
|---|---|---|
| MWW | 8.75 | -0.23 |
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TMP Worldwide Earnings Release For The Three Months Ended June 30, 1999
Total Commissions & Fees --Internet Commissions & Fees
Up 16.7% to $157.0 million Up 136.8% to $26.0 million
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)1
Up 18.9% to $28.7 million
Adjusted Net Income 2
Up 30.7% to $11.4 million, compared to a prior year amount of $8.7 million
Fully Diluted Adjusted EPS
Up 25.0% to $0.30 compared to prior year at $0.24, and 11.1% above First Call consensus of $0.27.
Fully Diluted Weighted Average Shares Outstanding
38.4 million vs. 36.9 million for the prior year
FOR THE SIX MONTHS ENDED JUNE 30, 1999
Total Commissions & Fees --Internet Commissions & Fees
Up 17.2% to $295.3 million Up 144.6% to $46.6 million
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)1
Up 21.8% to $50.1 million
Adjusted Net Income2
Up 35.5% to $18.6 million vs. a prior year amount of $13.8 million
Fully Diluted Adjusted EPS
Up 32.4% to $0.49 vs. prior year at $0.37
Fully Diluted Weighted Average Shares Outstanding
38.2 million vs. 36.8 million for the prior year
(1) EBITDA is adjusted to exclude the effect of pooling of interests related merger & integration costs of $2.5 million and $6.5 million for the three months and six months ended June 30, 1999, respectively, and $1.4 million for both 1998 periods. The excluded costs for the three months and six months ended June 30, 1999 and both 1998 periods are $3.3 million, $8.0 million and $2.5 million, respectively, less $0.8 million, $1.5 million, and $1.1 million, respectively, for amortization of employee stay bonuses. (2) Net income is adjusted to exclude the pooling of interests related after-tax effects of merger & integration costs of $2.7 million and $6.1 million for the three months and six months ended June 30, 1999, respectively, and is adjusted to exclude $2.0 million for both 1998 periods.
TMP WORLDWIDE REPORTS 31% INCREASE IN QUARTERLY EARNINGS; INTERACTIVE OPERATIONS CONTINUE TREND OF SOLID REVENUE GROWTH AND PROFITABILITY Fully diluted adjusted EPS up 25% to $0.30 for the second quarter of 1999;Company beats First Call analysts' expectations by 11.1% or $0.03 per share Interactive Operations, led by Monster.com, continue to generate profits and report record commissions & fees of $26.0 million, up 137% from the second quarter of the previous year and 27% from the first quarter of 1999
NEW YORK, August 3, 1999 -- TMP Worldwide Inc. (NASDAQ: TMPW; ASX: TMP), the leading provider of global recruitment solutions including the dominant Internet career portal, Monster.com, and the world's largest Yellow Pages advertising agency, today announced total commissions and fees of $157.0 million for the second quarter ended June 30, 1999 compared to $134.6 million for the same period a year ago, an increase of 16.7%.
Internet commissions and fees were $26.0 million for the quarter end June 30, 1999, up 136.8% from $11.0 million for the quarter ended June 30, 1998 and up 26.7% from $20.5 million from the first quarter of 1999. TMP's Internet operations also reported a fifth consecutive quarter of profitability, with an operating profit of $1.2 million for the second quarter of 1999.
Adjusted net income increased 30.7%, to $11.4 million in the second quarter of 1999 from $8.7 million in the second quarter of 1998. Fully diluted adjusted earnings per share increased 25.0% to $0.30 for the second quarter of 1999 from an adjusted $0.24 for the second quarter of 1998, and were $0.03 greater than First Call analysts' expectations.
The Consolidated Financial Statements for the three and six months ended June 30, 1998 have been restated to reflect the merger with Morgan & Banks Limited in January 1999 and the 12 other pooling of interests transactions completed during the period May 1, 1998 through June 30, 1999.
Growth in commissions and fees, along with higher margins in Internet and Temporary Contracting, Yellow Pages and Selection, contributed to a 24.7% increase in adjusted operating profit to $21.4 million and a 18.9% increase in adjusted EBITDA to $28.7 million. Adjusted operating profit as a percent of total commissions and fees was 13.6% in the second quarter of 1999, compared to 12.8% a year ago. Adjusted EBITDA as a percent of total commissions and fees was 18.3% in the second quarter of 1999, compared to 17.9% in the second quarter of 1998.
Recruitment Advertising commissions and fees were $43.3 million for the second quarter of 1999, versus $43.2 million for the second quarter of 1998. Yellow Page Advertising commissions and fees for the second quarter of 1999 and 1998 were $26.6 million. Commissions and fees for Search and Selection were $47.8 million for the second quarter of 1999 versus $43.0 million in 1998, an 11.0% increase, due primarily to acquisitions in Europe and organic growth in Europe and Australia. Temporary Contracting commissions and fees were $13.4 million, an increase of $2.6 million or 24.5% over $10.8 million for the second quarter of 1998, reflecting internal growth in Temporary Contracting operations in Australia, which resulted from continued strong demand for temporary workers in that country.
Total commissions and fees as a percent of related billings for the quarter were 37.6% as compared to 33.6% for the second quarter of 1998. The improved percentage reflects a decline in discounts given to Recruitment Advertising clients and increases in Internet, Search and Selection and Temporary Contracting sales volume, where a greater portion of the amount billed to the client is retained by the company.
TMP's adjusted operating profits for the second quarter of 1999 and 1998 of $21.4 million and $17.2 million, respectively, have been adjusted to exclude $3.3 million and $2.5 million, respectively, of merger and integration costs for pooling of interests transactions. Merger & integration costs include transaction costs for the mergers completed in the respective second quarters, the amortization of employee stay bonuses and, for 1999, office and management integration costs.
Andrew J. McKelvey, chairman and CEO of TMP Worldwide, stated, "It was another strong quarter, with our Interactive Operations accomplishing what all Internet companies strive for –profitable growth. This outstanding achievement is attributed to our global infrastructure, which allows our various sales forces to introduce current and potential clients around the world to the power of online recruiting. We are fully committed to further increasing the size of our already substantial global "Intern-to CEO" network."
"The quarter demonstrates the continued efforts of our business units and their achievements in integrating, expanding and streamlining operations as we continue to grow both organically and via acquisitions," said Jim Treacy, COO of TMP Worldwide. "These achievements are a direct result of our efforts in spreading capabilities across all our business lines, while collectively and aggressively migrating our clients to the Internet," continued Mr. Treacy.
TMP's Interactive Operations, anchored by Monster.com, have been successful in building the dominant position in the online recruiting category worldwide. As competition in the online job search marketplace increases, Monster.com continues to lead by providing the largest community of targeted users with the best career management and employee recruitment services. TMP launched Monster.com's national advertising campaign during the Super Bowl this year and will continue its television, radio and print marketing campaign in order to promote its leadership position in online careers and increase brand awareness among consumers.
"The Internet has become an absolute necessity for the recruiters and the job seekers," said Jeff Taylor, CEO of TMP Interactive. "It is imperative for us to continue to demonstrate to this audience our commitment to provide them with the best tool possible to achieve their goals. Thus far, we have clearly demonstrated this commitment, as Monster.com has become the site people think of when the words "job" or "career" come to mind," he continued.
According to independent research conducted by Media Metrix, 4.2% of the entire U.S. Internet population visited Monster.com during the month of June. This represents nearly twice as many unique visitors as its closest competitor. Monster.com is currently the 71st most often visited of all Internet sites and the 18th most popular in the Media Metrix category ranking of news, information and entertainment sites.
On July 4, 1999, Monster.com launched its newest service, The Monster Talent Market, a marketplace within Monster.com where free agents, consultants and independent professionals can market their skills in real time to employers in an innovative auction- style environment, creating a new relationship between talent supply and demand on the Web.
"As our investors certainly recognize, we at TMP understand the power and dynamic nature of ‘.com'. We are continuing to grow in the number of job postings paid for by our clients and the number of visitors to our site, thereby positioning ourselves as the service provider with the best and broadest menu," added Mr. McKelvey.
Six-Month Performance
TMP reported total commissions and fees of $295.3 million for the six months ended June 30, 1999, compared to $252.0 million for the year-earlier period, an increase of 17.2%. Internet commissions and fees increased 144.6% to $46.6 million for the six months ended June 30, 1999, from $19.0 million for the six months ended June 30, 1998. For the first six months of 1999, Internet Operations reported an operating profit of $1.7 million versus a loss of $0.2 million for the six months ended June 30, 1998. Adjusted EBITDA for the six months ended June 30, 1999 was $50.1 million versus $41.1 million for the same period a year ago, an increase of 21.8%.
Recruitment Advertising commissions and fees were $85.8 million for the six months ended June 30, 1999, compared to $86.7 million in 1998. Yellow Page Advertising commissions and fees were $49.7 million for the first six months of 1999, versus $49.3 million for the same period in 1998. Commissions and fees for the company's Search & Selection division for the first six months of 1999 increased 8.1% to $89.7 million from $83.0 million for the comparable period a year ago.
Excluding poolings of interests related merger & integration costs of $8.0 million in 1999 and $2.5 million in 1998, the company reported adjusted operating income of $36.0 million for the first six months of 1999, up $7.7 million or 27.3% when compared to $28.3 million for the six months ended June 30, 1998.
Adjusted net income increased 35.5%, to $18.6 million for the six months ended June 30, 1999 from $13.8 million a year ago. Fully diluted adjusted earnings per share increased 32.4%, to $0.49 for the six months ended 1999 from $0.37 for the same period in 1998.
"As we look ahead, our primary focus is to continue to grow our businesses organically and through acquisitions, with particular emphasis on ‘.com' delivery. We are migrating our sales and marketing infrastructure as well as our clients to the Web," said Mr. McKelvey.
Acquisition Strategy Continues TMP Expands Market Share in Each of its Four Business Units during the Second Quarter
Within the Yellow Page Advertising Division, in May of 1999, TMP acquired LIDA Advertising, Inc., based in St. Louis, Missouri and Yellow Pages Unlimited, Inc. based in Indianapolis, Indiana, in pooling of interests transactions. On May 28, 1999, TMP also acquired, in a pooling of interest transaction, In2, Inc., a state of the art, online marketing agency and technology company based in New York City. As TMP's clients migrate their key businesses to the Web, In2 will provide them with complete online marketing solutions and it will continue to expand its own interactive client base and develop technology solutions. This acquisition also marked the establishment of two new business units within the company's Yellow Page Advertising Division – Interactive Direct Marketing and Interactive Technologies.
Adding to its global "Intern-to CEO" network and demonstrating the company's commitment to maintaining its leadership position as the ultimate provider of global recruitment solutions, TMP's Search and Selection and Recruitment Advertising units acquired nine businesses.
In May, TMP acquired two executive search companies, Maes & Lunau in the Netherlands and Lemming & LeVan, Inc. in the U.S., both in pooling of interests transactions. The company also purchased the selection agencies Cogeplan in France and Theaker, Monro & Newman in the U.K. On April 30,1999, TMP acquired, also in a pooling of interests transaction, InterQuest, a Sydney-based provider of Temporary Contracting personnel, specializing in Information Technology. On April 9, 1999, TMP's Recruitment Advertising unit acquired Ross Advertising, a recruitment advertising agency headquartered in Toronto, Canada. TMP entered the recruitment advertising business in Denmark with the acquisition of Jobdesign ApS on May 1, 1999, and the Irish recruitment advertising market with the purchase of Eureka Advertising on May 28, 1999. It continued to expand in the Netherlands with the purchase of IWP on April 28, 1999.
On April 1, 1999, TMP acquired Paris-based JobSesame, a graduate-focused careers website, with services encompassing school-specific targeting for graduate recruitment and internship listings. The company plans to integrate the JobSesame model into its Monster Campus as a means of enhancing online graduate recruiting efforts throughout Europe.
The preceding acquisitions had combined annual commissions and fees of approximately $25.0 million for their most recent fiscal year.
Special Note
The above statements include forward-looking statements based on current management expectations. Factors that could cause future results to differ from these expectations include: risks associated with acquisitions, competition and seasonality. Additional factors are described in the company's reports filed with the Securities and Exchange Commission.
Founded in 1967, TMP Worldwide, now with more than 5,700 employees in 25 countries, is the online recruitment leader, the world's largest recruitment advertising agency network, and one of the world's largest search and selection agencies. TMP Worldwide, headquartered in New York, is also the world's largest yellow page advertising agency and a provider of direct marketing services. The company's clients include more than 80 of the Fortune 100 and more than 400 of the Fortune 500 companies.
Monster.com (www.monster.com), the flagship product of the Interactive Division of TMP Worldwide, is the leading, global online network for careers, connecting the most progressive companies with the most qualified career-minded individuals. Monster.com is committed to leading the market by offering innovative technology and superior services that give consumers and businesses more control over the recruiting process. The Monster.com network currently consists of websites in the United States, Canada, the United Kingdom, the Netherlands, Australia and Belgium and France. More information about Monster.com is available at www.monster.com or by calling 1-800-MONSTER.
A condensed consolidated statement of income for the second quarter and the six months ended June 30, 1999 for TMP Worldwide Inc. and subsidiaries follows. For an investment kit, please contact James J. Treacy at (212) 527-8604 or visit www.tmpw.com
TMP WORLDWIDE INC CONDENSED CONSOLIDATED STATEMENT OF INCOME For the Three Months Ending (in thousands, except per share amounts) (unaudited)
Gross Billings: Recruitment advertising Yellow page advertising Search & selection Internet Temporary contracting ======================== Total gross billings ========================
June 30, 1999 ------------- $192,227 134,143 48,159 29,454 13,445 ============= $417,428 =============
June 30, 1998 ------------- $202,586 131,722 43,433 12,223 10,798 ============= $400,762 =============
Commissions & fees: Recruitment advertising Yellow page advertising Search & selection Internet Temporary contracting ------------------------------------- Total commissions & fees -------------------------------------
------------- $43,261 26,561 47,753 26,025 13,445 ------------- 157,045 -------------
------------- 43,194 26,560 43,022 10,992 10,798 ------------- 134,566 -------------
Operating expenses: Salary & related costs Office & general Merger & integration costs CEO bonus Amortization of intangibles --------------------------- Total operating expenses --------------------------- Operating income --------------------------
88,751 44,252 3,346 --- 2,622 ------------- 138,971 ------------- 18,074 -------------
79,945 37,324 2,487 375 2,738 ------------- 119,869 ------------- 14,697 -------------
Other income (expense): Interest expense, net Other ----------------------- Total other income (expense), net ------------ -------------
(1,834) (16) ------------- (1,850) ------------
(2,425) (238) ------------- (2,663) -------------
Income before income taxes, minority interests & equity in (losses) of affiliates Provision for income taxes ----------------------
16,224 7,419 -------------
12,034 5,255 -------------
Income before minority interests & equity in (losses) of affiliates Minority interests Equity in (losses) of affiliates ----------------------
8,805 8 (100) -------------
6,779 (17) (87) -------------
Net income applicable to common and Class B common stockholders ======================
$8,697 =============
$6,709 =============
Adjusted net income: Net income Merger & integration costs Tax benefit of merger and integration costs =================================== Adjusted net income ===================================
$8697 3,346 (646) -------- $11,397 ========
$6,709 2,487 (477) -------- $8,719 ========
Net income per common and =================================== Class B common share =================================== Basic ================== Diluted ==================
$0.24 ================== $0.23 ==================
$0.19 ================== $0.18 ==================
Adjusted net income per common and ==================================== Class B common share ================================== Basic ================== Diluted ==================
$0.31 ============= $0.30 =============
$0.24 ============= $0.24 =============
Weighted average shares outstanding ================================= Basic ================== Diluted =================== Adjusted E B I T D A(a) ======================
36,644 ============= 38,352 ============= $28,709 =============
35,846 ============= 36,923 ============= $24,137 =============
(a) 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 STATEMENT OF INCOME For the Six Months Ending (in thousands, except per share amounts) (unaudited)
Gross Billings: Recruitment advertising Yellow page advertising Search & selection Internet Temporary contracting ================================ Total gross billings ================================ Commissions & fees: Recruitment advertising Yellow page advertising Search & selection Internet Temporary contracting -------------------------------- Total commissions & fees -------------------------------- Operating expenses: Salary & related costs Office & general Merger & integration costs CEO bonus Amortization of intangibles -------------------------------- Total operating expenses -------------------------------- Operating income -------------------------------- Other income (expense): Interest expense, net Other -------------------------------- -------------------------------- Total other income (expense), net --------------------------------
Income before income taxes, minority interests & equity in (losses) of affiliates Provision for income taxes --------------------------------
Income before minority interests & equity in (losses) of affiliates
Minority interests Equity in (losses) of affiliates --------------------------------
Net income applicable to common and Class B common stockholders ================================
Adjusted net income: Net income Merger &integration costs Tax benefit of merger & integration costs ================================= Adjusted net income =================================
Net income per common and ================================ Class B common share =========================== Basic =================== Diluted =================== Adjusted net income per common and ================================ Class B common share =========================== Basic =================== Diluted =================== Weighted average shares outstanding ================================ Basic =================== Diluted =================== Adjusted E B I T D A(a) ================================
June 30, 1999 --------------- $387,524 251,197 90,826 52,545 23,484 =============== $805,576 ===============
$85,804 49,731 89,739 46,563 23,484 --------------- 295,321 ---------------
168,555 85,485 8,033 --- 5,256 --------------- 267,329 --------------- 27,992
--------------- (4,564) (59) --------------- ---------------
(4,623) ---------------
23,369
10,475 ---------------
12,894 107 (200) ---------------
$12,587 ===============
$12,587 8,033
(1,977) =============== $18,643 ===============
$0.34 =============== $0.33 ===============
$0.51 =============== $0.49 ===============
36,540 =============== 38,217 =============== $50,058 ===============
June 30, 1998 ------------------ $409,204 243,771 83,431 21,154 13,975 ============= $771,535 =============
$86,672 49,302 83,020 19,034 13,975 ------------- 252,003 -------------
142,719 75,251 2,487 750 4,981 ------------- 226,188 ------------- 25,815 -------------
(4,891) (335) ------------- -------------
(5,226) -------------
20,589
8,671 -------------
11,918 (1) (174) -------------
$11,745 =============
$11,745 2,487
(477) ============= $13,755 =============
$0.33 ============= $0.32 =============
$0.38 ============= $0.37 =============
35,821 ============= 36,815 ============= $41,093 =============
(a) 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.
