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| MWW | 8.75 | 0.00 |
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TMP Worldwide Reports As Adjusted Diluted EPS of $0.20
NEW YORK--Aug. 3, 1998-- TMP Worldwide Inc. today announced commissions and fees of $86,278,000 for the quarter ended June 30, 1998 compared to $54,636,000 for the second quarter of 1997, an increase of 58%.
TMP also reported that its Interactive Division has recorded a second quarter operating profit of $455,000. Internet revenue for the company increased 141% to $10,710,000 in the second quarter of 1998 from $4,439,000 in the second quarter of 1997.
``It was another tremendous quarter with our Interactive Division accomplishing what all Internet companies strive for - reporting an operating profit for the quarter,'' said Andrew J. McKelvey, chairman and CEO of TMP Worldwide. ``Part of the credit for this success is attributed to our global infrastructure, which allows our sales force to introduce current and potential clients around the world to the power of online recruiting.
``And while our Internet revenue and profit were clearly the highlights of the quarter, we can't overlook the strong performance of both our recruitment advertising and yellow page advertising divisions,'' he added.
Recruitment and Yellow Page Perform Strong
Recruitment advertising commissions and fees were $50,700,000 for the second
quarter of 1998, compared to $27,161,000 for the second quarter of 1997, an
87% increase. Yellow page advertising commissions and fees were $24,868,000
for the second quarter of 1998, as compared to $23,036,000 for the second
quarter of 1997, an 8% increase.
Excluding merger costs relating to the company's April acquisition of Johnson, Smith & Knisely, Inc., which is being accounted for as a pooling of interests, the company reported an operating profit for the second quarter of 1998 of $11,990,000, as compared to $6,006,000 for the comparable period in 1997, an increase of 100%.
For the quarter ended June 30, 1998, excluding merger costs net of tax benefits, net income applicable to common and Class B common stockholders was up 185% to $5,447,000 or $0.20 per diluted share, on 27,692,000 weighted average shares outstanding as compared to net income applicable to common and Class B common stockholders of $1,908,000, or $0.08 per diluted share for the second quarter of 1997 on 23,995,000 weighted average shares outstanding.
Earnings, excluding merger costs and before interest, income taxes, depreciation and amortization (EBITDA) increased 80% to $17,008,000 for the second quarter of 1998, versus $9,453,000 for the comparable period in 1997.
Internet Strategy Working
According to McKelvey, Internet revenue of $10,710,000 for the second quarter
of 1998 increased 39% over the $7,702,000 for the first quarter of 1998,
which was up 36% from the $5,679,000 for the fourth quarter of 1997.
``We believe we've created the number one career portal on the Internet, a `place' where job seekers can go to manage their career from start to finish, and the exponential growth of our Internet revenue clearly indicates that our `intern to CEO' strategy is on target,'' said McKelvey. ``What's also significant about the continued growth of our Internet business, however, is that it reflects our clients' understanding and confidence in this strategy.
``In today's world people want to manage their career online and our clients understand that's where their jobs must be, if they're going to succeed in an increasingly competitive marketplace,'' he added. ``Currently, 34,000 companies, including a large percentage of our current client base, post at least one paid job on our online career Web sites.''
Acquisitions Strengthen Career Portal Strategy
The second quarter acquisitions of About Work (www.aboutwork.com) and AOL Keyword:
About Work) and StudentCenter (www.studentcenter.com)
further strengthened TMP's interactive offerings, bolstering overall content
as well as reach in the all important college marketplace. McKelvey believes
that the continued development of this comprehensive network of online career
products and services is extremely important as the popularity of managing
your career online continues to grow. As an example, he noted the company's
plan to leverage its recent acquisition in the executive search and selection
marketplace to introduce executive search and selection to the Internet
sooner than most people expect.
``You only need to look at the continued increase in traffic to The Monster Board and Online Career Center to understand that more and more job seekers, at all stages of their career, are turning to the Internet for their job search and career related information,'' McKelvey said. ``The TMP Interactive career portal is a constantly evolving network of online career resources that offers job seekers the tools they need today, tomorrow and well into the future.''
According to June Nielsen I/PRO reports, traffic to The Monster Board (www.monster.com) and OCC (www.occ.com) topped 3.9 million unique visits a month. Media Metrix/PC Meter's and Relevant Knowledge's June ratings reported that The Monster Board continues to remain the Web's top ranked career site.
An equally important part of the company's Internet success is its alliance strategy, which effectively drives job seekers to its Web sites, further increasing exposure of its clients' job information. Netscape, Lycos, AT&T WorldNet Services, WorldPages, Future Pages, College Town U.S.A. and Golden Key National Honor Society are the latest additions to the long list of more than 50 strategic alliances, which include AOL, Excite, Yahoo! Classified and Microsoft Skills 2000.
Six Month Performance
TMP reported commissions and fees of $159,275,000 for the six months ended
June 30, 1998, compared to $100,619,000 for the year-earlier period, an
increase of 58%. Internet revenue increased 124% to $18,412,000 for the six
months ended June 30, 1998 from $8,208,000 for the six months ended June 30,
1997. Excluding merger costs, the company reported an operating profit for
the first six months of 1998 of $18,755,000 compared to $11,001,000 for the
same period in 1997, an increase of 70%.
For the six months ended June 30, 1998, excluding merger costs net of tax benefits, net income applicable to common and Class B common stockholders was $7,807,000 or $0.29 per diluted share, on 27,229,000 weighted average shares outstanding as compared to net income applicable to common and Class B common stockholders of $3,295,000, or $0.14 per diluted share, for the six months ended June 30, 1997 on 24,037,000 weighted average shares outstanding. Excluding merger costs EBITDA for the first six months of 1998 was $28,414,000 versus $17,155,000 for the same period in 1997, an increase of 66%.
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 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.
Founded in 1967, TMP Worldwide is the online recruitment leader, one of the world's largest recruitment advertising agency networks with a rapidly growing presence in the search and selection industry, and the world's largest yellow page advertising agency with more than 3,550 employees in 13 countries. The company is also a provider of direct marketing services. TMP Worldwide's clients include more than 70 of the Fortune 100 and more than 285 of the Fortune 500 companies. The TMP Worldwide Interactive career portal delivers the most comprehensive set of career services on the Web including The Monster Board, the largest and most successful career center on the World Wide Web; Online Career Center, the Internet's earliest career site; MedSearch, (www.medsearch.com), the primary online ``help wanted'' service for the health care industry; Be the Boss (www.betheboss.com), a leading provider of information on franchise opportunities; About Work, the most comprehensive provider of career advice and information, and StudentCenter, which includes the largest online Internship database.
A condensed consolidated statement of income for the second quarter of 1998 and six months ended June 30, 1998 for TMP Worldwide Inc. and subsidiaries follows on the next page. For an investment information kit on TMP, please contact James J. Treacy at (212) 527-8604 or visit the company's Web site at www.tmpw.com.
The Monster Board is a registered trademark of TMP Worldwide. Online Career Center, Be The Boss and MedSearch are service marks of TMP Worldwide.
TMP WORLDWIDE INC CONDENSED CONSOLIDATED STATEMENT OF INCOME For the Six Months Ended (in thousands, except per share amounts) June 30, 1998 June 30, 1997 Gross Billings:Yellow pages $229,281 $210,377Recruitment 404,194 240,622Internet 20,356 8,555Total $653,831 $459,554 Commissions & fees:Yellow pages $46,437 $42,750Recruitment 94,426 49,661Internet 18,412 8,208Total 159,275 100,619 Operating expenses:Salary & related costs 81,839 50,484Office & general 54,056 36,285Merger costs 2,487 0Total Amort of intangibles 4,625 2,849Total operating expenses 143,007 89,618 Operating income 16,268 11,001 Other income (expense):Interest expense, net (4,858) (4,048)Other (93) 3Total other income (expense), net (4,951) (4,045) Income before taxes, minority interests & equity in earnings (losses) of affiliates 11,317 6,956 Provision for income taxes 5,346 3,306 Income before minority interests & equity in earnings (losses) of affiliates 5,971 3,650 Minority interests 0 227Equity in earnings (losses) of affiliates (174) (5) Net income 5,797 3,418 Preferred dividend 0 (123) Net income applicable to commonand Class B common stockholders $5,797 3,295 June 30, 1998 June 30, 1997 Adjusted net income:Net income $5,797 $3,295Merger costs 2,487 0Tax benefit on merger costs (477) 0Adjusted net income $7,807 $3,295 Adjusted net income per basic share $0.29 $0.14 Adjusted net income per diluted share $0.29 $0.14 Weighted average basic shares outstanding 26,519 23,454 Weighted average diluted shares outstanding 27,229 24,037 Adjusted E B I T D A(a) $28,414 $17,155 (a) Earnings before interest, income taxes, depreciation and amortization and adjusted to exclude the effects of merger costs for poolings. 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 Three Months Ended (in thousands, except per share amounts) June 30, 1998 June 30, 1997 Gross Billings:Yellow pages $123,763 $111,566Recruitment 204,109 129,186Internet 11,820 4,649Total $339,692 $245,401 Commissions & fees:Yellow pages $24,868 $23,036Recruitment 50,700 27,161Internet 10,710 4,439Total 86,278 54,636 Operating expenses:Salary & related costs 44,653 27,145Office & general 27,098 19,966Merger costs 2,487 0Total Amort of intangibles 2,537 1,519Total operating expenses 76,775 48,630 Operating income 9,503 6,006 Other income (expense):Interest expense, net (2,454) (2,251)Other (65) 9 Total other income (expense), net (2,519) (2,242) Income before taxes, minority interests & equity in earnings (losses) of affiliates 6,984 3,764 Provision for income taxes 3,460 1,798 Income before minority interests & equity in earnings (losses) of affiliates 3,524 1,966 Minority interests 0 43Equity in earnings (losses) of affiliates (87) (15) Net income 3,437 1,908 Preferred dividend 0 0 Net income applicable to commonand Class B common stockholders $3,437 $1,908 June 30, 1998 June 30, 1997 Adjusted net income:Net income $3,437 $1,908Merger costs 2,487 0Tax benefit on merger costs (477) 0Adjusted net income $5,447 $1,908 Adjusted net income per basic share $0.20 $0.08 Adjusted net income per diluted share $0.20 $0.08 Weighted average basic shares outstanding 26,928 23,490 Weighted average diluted shares outstanding 27,692 23,995 Adjusted E B I T D A(b) $17,008 $9,453 (b) Earnings before interest, income taxes, depreciation and amortization and adjusted to exclude the effects of merger costs for poolings. 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.
