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TMP Worldwide Reports Record Breaking First Quarter Results
TMP Worldwide Reports Record Breaking First Quarter Results;Internet Commissions & Fees Over Three Times Higher Than 1999 Michael Barath Normal TMP 3 114 2000-06-15T18:01:00Z 2000-09-11T20:28:00Z 2000-09-11T20:30:00Z 8 2825 16105 TMP Worldwide 134 32 19778 9.2720 0 0 MicrosoftInternetExplorer4
For Immediate Release Contact: Lavine Surtani
(212) 445-8262
Jim Treacy
(212) 527-8604
Monster Momentum Continues as TMP Interactive Division Reports
Commissions & Fees of $68.4 Million; Up 218.7% from First Quarter 1999;
Up 33.1% Sequentially over Fourth Quarter 1999
TMP Worldwide's aAdjusted diluted EPS up 150.0%185.9% for the first quarter of 2000 over 1999; Beats First Call analysts' earnings estimates by 25%, or $0.03 per share
FOR THE THREE MONTHS ENDED MARCH 31, 2000[1]
Total Commissions and Fees Up 34.0% to $244.0 million
-- Internet Commissions and Fees Up 218.7% to $68.4 million
Adjusted Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)[2] Up 80.2%85.9% to $32.1 million Adjusted Net Income[3] Up 191.0%231.6% to $14.5 million Adjusted Diluted EPS[4] Up 150.0%200.0% to $0.15 compared to prior year at $0.065 Diluted Weighted Average Shares Outstanding 96.9 million
First Quarter 2000 results will be discussed on TMP's Quarterly Conference call taking place on Wednesday, May 3, 2000. To join the conference call, please dial in on 1-888-882-0083 at 8:20 AM E.S.T. For those outside the United States, please call in on 1-212-346-0300. The call will begin promptly at 8:30 AM E.S.T.
________________________________________________________________________
See Endnotes
New York, NY - May 2, 2000 -- 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,, and one of the world's largest search and selection firms, today announced another record-breaking quarter with total commissions and fees of $244.03 million for the first quarter ended March 31, 2000 compared to $182.1 million for the same period a year ago, an increase of 34.0%., besting all lines of analysts' expectations.
Internet commissions and fees were increased 218.7% to$68.4 million for the first quarter ended March 31, 2000; over three times higher than Internet commissions and fees for the first quarter of 1999 of $21.5 million. Internet commissions and fees for the first quarter of 2000 were also up 335.1% sequentially from the $51.4 million reported for the fourth quarter ended December 31, 1999. TMP's Internet oOperations also reported an operating profit of $10.896 million for the first quarter ended March 31, 2000, representing an operating margin of 15.9%..
Adjusted net income increased 191.0%231.6%, to $14.5 million for the first quarter ended March 31, 2000 compared to $5.04.3 million for the first quarter ended March 31, 1999. Diluted adjusted earnings per share increased 150.0%00% to $0.15 for the first quarter of 2000 compared to to adjusted earnings per share of$0.065 for the first quarter of 1999. Earnings were $0.03 or 25% greater than First Call analysts' earnings estimates.
Growth in Internet and Search & Selection commissions and fees, together with higher operating margins in Internet, Search & Selection and and Yellow PagesRecruitment Advertising, contributed to a 126.8%162.9% increase in adjusted operating profit to $20.9 million and ann 80.2%85.9% increase in adjusted EBITDA to $32.1 million. Adjusted operating profit as a percentage of total commissions and fees was 8.6% for the quarter ended March 31, 2000 compared to 5.14% for the quarter ended March 31, 1999.
Search & Selection commissions and fees increased 15.6% to $86.8 million for the first quarter ended March 31, 2000 compared to $75.1 million for the prior year period, reflecting continued strong demand for permanent professional employees worldwide, particularly in mid-level management positions (annual salaries ranging from $75,000 to $150,000). In addition, Temporary Contracting commissions and fees increased 23.2% to $19.7 million for the first quarter of 2000 versus $16.0 million for the same period last year, reflecting the resumption of strong demand for temporary staffing in Australia, particularly in the IT sector.
Recruitment Advertising commissions and fees were flat at $45.7 million for the first quarter ended March 31, 2000 versus $45.6 million for the first quarter of 1999, resulting from only modest growth in traditional media billings and a reduced level of higher margin collateral services for the quarter. However, In contrast, theis division increased its contribution to reportedInternet commissions and fees, which were discussed earlier,, and reporteding of $5.88.2 million of Internet commissions and fees for the first quarter of 2000 versus up from $2.8 million for the same period last year, a more than two-fold increase., This reflects reflectingthe division's continued efforts to help clients optimize their recruitment media plans and assist their migration from print to the Iinternet.
Yellow Page Advertising billings increased 11.0% to $133.2 million for the first quarter ended March 31, 2000., hHowever, commissions and fees decreased 2.1% to $23.3 million for the first quarter of 2000 compared to $23.8 million for the prior year period, reflecting substantially reduced commissions paid by publishers and the effects of higher discounts for certain large clients.
Total commissions and fees as a percent of related billings for the first ourthquarter ended DecemberMarch 31, 20001999 were 45.7% compared to 40.8% for the prior year period. The higher percentage reflects increased Internet and Search & Selection sales volume, where the Company retains greater portions of the amounts billed.
The adjusted net income, EPS, EBITDA and operating profit amounts discussed above reflect adjustments to exclude merger and integration costs and restructuring charges incurred in connection with companies acquired using the pooling of interests method of accounting in the first quarter of 1999, before it was pooled with TMP. (please see the Endnotes).
Merger and integration costs for the first quarter ended March 31, 2000 were $8.76 million versus $4.7 million for the first quarter of 1999. Such costs include transaction costs for the mergers completed in the respective first quarters and the amortization of employee stay bonuses. In addition, these costs also include separation pay and office and management integration costs, which include the elimination of redundant management, closing of excess leasehold facilities, and the write-off of fixed assets, which will not be used in the future. The first quarter 2000 costs are chiefly related to the merger and integration of HW Group PLC, and were anticipated and factored into the price paid for this company, which was acquired using the pooling of interests method of accounting. Restructuring charges for the first quarter ended March 31, 1999 were $2.8 million and werelat incurred toby LAI, when it was run as a separate public company, in connection with. The LAI charges were recorded for the closing of its London and Hong Kong offices.
Andrew J. McKelvey, Chairman and CEO of TMP Worldwide stated: “This quarter's results confirm, once again, that human capital management has become the critical componenthurdle to any organization's futureability to growth. TMP Worldwide, with our “Intern-to-CEO” strategy and Monster.com, our Internet career portal, at the center, is uniquely positioned to help our clients meet thisese challenges both on- and off-line with our unrivaled and ever-increasing offering suiteof global career solutions. At the core is our 'Intern-to-CEO' strategy, which harnesses our capabilities within a one-of-a-kind employee sourcing continuum, with the internet at it's center, and Monster.com, our flagship career portal, operating as its nucleus. Bringing applicants and employers together throughout every level of the career cycle while using technology as the mechanism, is our winning sourcing mix for the employment challenges of today and tomorrow. The ability to deliver these solutions at every level of employment is clearly driving and accelerating the company's growth and profitability.”
“The first quarter results demonstrate the power and potential of our businesses to produce significant cross-sales synergies and operational efficiencies,” said Jim Treacy, COO of TMP Worldwide. “They also continue to validate TMP's long-standing commitment to developing its Internet businesses alongside its traditional businesses; leveraging sales relationships and infrastructure while maintaining a money-making culture throughout the process. Looking at tThese factors, together with the strength of our balance sheet and our ability to produce meaningful cash earnings, makes this a very opportune istic time for TMP's growth and development,” continued Mr. Treacy.
TMP's Interactive operations, anchored by Monster.com, dominate the online career marketplace worldwide. Monster.com outperforms its closest competitor in Web traffic by at least 130%in every reach category. According to the most recent monthly independent research released by Media Metrix in March 2000, 4.9% of the 68.3 million U.S. Internet users visited Monster.comthe site, which amounted to 3.55 million unique visitors. In addition, each visitor spent, each spending an average of 23.4 minutes and looked ing at an average of 33.2 pages, which resulteding in a “power ranking”* of 162.7 for Monster.com—more than five times larger than its closest competitor's “power ranking”* of 30.5. Media Metrix also ranks Monster.com as one of the top 100 most visited sites on the Internet.
Beginning with Kicking off its thesecond year of national advertising during this year's Super Bowl, TMP continued d its aggressive marketing and branding campaigns for Monster.com, which helped propel Monster.com to its recent. Most recently, Monster announced a record milestone of seven million registered job seekers on the site. Monster.com also continues to expand globally and currently has 10 local language and content services existing in the United States, the United Kingdom, Canada (in French and English), Australia, New Zealand, the Netherlands (in Dutch and English), Belgium (in French and Flemish), France, Singapore and Hong Kong. The Company plans to have a total of 20 international sites operational by the end of 2000.
"According to independent research conducted by Media Metrix for the month of March, Monster.com continues to lead the online recruiting industry as the number one destination for career seekers," said Jeff Taylor, CEO of Monster.com. “When you combine this with our ranking as one of the top 100 overall most visited websites on the Internet, the success thus far, and future potential of Monster.com is outstanding.”
Monster.com also recentlyintroduced its newest release, Monster 2000, early in the first quarter. In addition to a new contemporary look and feel, Monster 2000 has industry revolutionizing features, including tiered resume privacy technology, options to store multiple resume versions, and enriched personalization features, with dynamic content delivery. Increased consumer acceptance of these resume services, and their confidentiality features, is evidenced by the more than 3.4 million resumes currently stored with Monster.com, which has been growing at an average rate of over 13,000 new resumes per day.
“Monster.com is the premier resource for helping people discover what ‘career success' means to them,” said Jeff Taylor, CEO of Monster.com. “We are committed to continually updating Monster's content and capabilities to better suit the needs of today's job seekers and employers. Staying current and providing meaningful content and functionality is what makes Monster.com the foremost online career management tool. At Monster.com, we are continually setting the standards and raising the bar for what the world should be expected from a career management portal,” continued Mr. Taylor.
On February 28, 2000, TMP entered into an exclusive agreement with the dominant Australian Internet portal, NineMSNmsn, a joint venture owned equally between E-corp and Microsoft. The partnership agreement will makes Monster.com the exclusive job search and career content channel on NineMSNmsn. Plans were also announced for a similar joint venture in Asia with E-corp. “This relationship with NineMSNmsn will add tremendous momentum to our existing Australian and Asia Pacific efforts and extend our career expertise even faster and stronger throughout the region,” said Jeff Taylor. “These newest ventures, following our riding high off the coattails of Monster'sfour-year strategic partnership premier provider relationship with all of 7 AOL brands in North America (the AOL Service, AOL Canada, AOL.com, CompuServe, ICQ, Netscape Netcenter and Digital City), are testimony amentsto the phenomenal importance of the Internetubiquitous presence to businesses and consumers around the world and the global power of the Monster.com brand,”continued Mr. Taylor.
Yahoo! Internet Life, in its May 2000 issue, also recognized Monster.com as the best site on the Web to find a job, out of more than 30,000 sites devoted to careers, providing further confirmation of Monster.com's unparalleled leadership position. According to the judges, “Many sites can help in your hunt, but none as well as Monster.com. You get not only an enormous database of postings to scour, from industry majors to fledging startups, but also an online career coach.”
“More job seekers than ever are realizing the career possibilities available to them through Monster.com,” said Jeff Taylor. “The record number of job seeker accounts, Media Metrix findings month after month, and now this award from Yahoo! Internet Life, provide testament that Mosnter.com continues to be the online careers site of choice.”
Mr. McKelvey further commented, “This has been another breakaway quarter for Monster.com. The strategic partnerships, aggressive marketing and product innovations not only further enhance Monster.com's leadership, but also have truly affected the employment culture in the U.S. and abroad. Almost daily we see references to Monster.com as an icon of Internet power that goes beyond the concept of market share. Monster.com is fundamentally changing the way people evaluate their career progression and look for new job opportunities and advice.”
TMP Completes 2-for-1 Stock Split and Follow-on Stock Offering
On January 11, 2000, TMP announced a 2-for-1 stock split in the form of a stock dividend on the Company's outstanding common stock, which was paid on February 29, 2000 to stockholders of record as of February 16, 2000. First quarter 2000 saw aggressive activity on TMP's shares of common stockOn February 2, 2000 the Company completed a follow-on public offering of 4.0 million (pre-split) shares of common stock The follow-on offering price was $154 5/8 per share, equal to the closing price on January 27, 2000. The net proceeds raised by the Company during the offering after deducting underwriting discounts, commissions and estimated offering expenses totaled $594.3 million.
TMP Acquisitions Continue
The first quarter of 2000 continued to be productive for TMP acquisition activity, with a total of 89 companies acquired; including four transactions accounted for as pooling of interests.
In February 2000, TMP acquired Microsurf, Inc., a comprehensive group of consumer Websites focused on relocation and other home services, in a pooling of interests transaction. Through sites such as MortgageQuotes.com and MoverQuotes.com, the Microsurf network enables consumers to make more intelligent and efficient relocation and home financing decisions via the Internet and these services are highly complementary and synergistic with Monster's services for job seekers.
Adding to the worldwide “Intern-to CEO” network, the TMP Search & Selection division acquired 56 businesses, 34 of which were accounted for as poolings of interests transactions. The largest acquisition within this division was HW Group PLC, which was acquired closed in February 2000 in a pooling of interests transaction. HW Group is one of the most integrated mid-market recruitment consultancies in the U.K. with strength in the Finance, Legal and Human Resources sectors. The other four companies acquired were: Illsley Bourbonnais in Canada and Burlington & Wells, Inc. in the U.S. (Florida)—both in pooling of interests transactions, and Baumgartner & Partner Personalberatung GmbH in Germany and Human Factors Group LLC and System One Services, Inc, both in the U.S. (Ohioand Tampa respectively).
TMP's Recruitment Advertising unit acquired 2 businesses: Medios Publicitarios Activos MPA, S.A. in Spain and Curriculum, S.A. in France, further expanding the division's agency network in Europe.
About TMP Worldwide
Founded in 1967, TMP Worldwide, now with more than 7,600 employees in 29 countries, is the on-line recruitment leader, the world's largest Recruitment Advertising agency network, and one of the world's largest executive Search & 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. More information about TMP Worldwide is available at www.tmp.com.
About Monster.com
Monster.com (www.monster.com), the flagship product of the Interactive Division of TMP Worldwide, is the leading global career portal on the Web with over 15.2 million unique visits per month per Nielsen 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 language and content sites in the United States, United Kingdom, Australia, Canada, the Netherlands, Belgium, New Zealand, France, Singapore and Hong Kong. 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 ending March 31, 2000 for TMP Worldwide Inc. and subsidiaries follow. For an investment kit, please contact James J. Treacy at (212) 527-8604 or visit www.tmp.com.
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* ‘“Power ranking” ,' which is the result of equals “audience reach”' multiplied by “‘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).represents aggregate job seeker activity in a given month.
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.
1 Prior periods' results have been retroactively restated to reflect the effects of acquisitions accounted for as poolings of interests which were completed prior to March 31, 2000.
2 EBITDA has been adjusted to exclude the effects of merger and integration costs of $8.7 million and $4.7 million for the first quarters ended March 31, 2000 and 1999, respectively. In addition, restructuring charges of $2.8 million have been excluded for the first quarter ended March 31, 1999.
3 Net income has been adjusted to exclude the effects of merger and integration costs incurred, net of the tax benefits thereon, of $7.1 million and $3.3 million for the first quarters ended March 31, 2000 and 1999, respectively. In addition, restructuring charges, net of the tax benefits thereon, of $1.7 million have been excluded for the first quarter ended March 31, 1999.
4 Available to common and Class B shareholders after excluding merger and integration costs and restructuring charges, net of the tax benefits thereon.
