WESTON, Massachusetts,
Oct. 21, 2016 /PRNewswire/
-- Monster Worldwide, Inc. (NYSE: MWW) today reported
financial results for the third quarter ended September 30, 2016 and a GAAP to Non-GAAP
reconciliation schedule for the third quarter ended September 30, 2016.
Third Quarter Financial Results
Revenue from continuing operations of $144.8 million decreased 13% at both actual and
constant rates year over year. Revenue from the Company's
Careers – North America operations
decreased 16% year over year to $99.7
million. Revenue from Careers – International of
$45.0 million was down 6% at actual
rates and 2% in constant currency compared with the 2015 third
quarter.
Total GAAP operating expenses from continuing operations were
$338.0 million. Operating
expenses included non-cash, pre-tax goodwill and other asset
impairment charges of $182.2 million
related to the completion of a formal impairment analysis referred
to in the Company's second quarter 10-Q filing. Net loss from
continuing operations was $180.5
million, or a loss of $2.03
per share. In last year's third quarter, net income from
continuing operations was $9.8
million, or $0.10 per share.
Deferred revenue was $224.2
million compared to $239.3
million as of June 30,
2016.
Non-GAAP net loss from continuing operations was $4.7 million, or a loss of $0.05 per share, compared to net income of
$9.7 million, or $0.11 per share, in last year's third quarter.
Cash EBITDA was $0.4 million compared
to $25.3 million in the third quarter
of 2015. Pro-forma items are described in the "Notes
Regarding the Use of Non-GAAP Financial Measures" and are
reconciled to the GAAP measure in the accompanying
tables.
As previously announced on August 9,
2016, Monster entered into a definitive agreement with
Randstad Holding nv (AMS: RAND), under which Randstad, through a
wholly-owned subsidiary, will acquire Monster for $3.40 per share in cash. The transaction is
expected to close during the fourth quarter of 2016. The
Monster Board of Directors unanimously recommends that Monster
shareholders tender their shares into the Randstad offer.
In light of the announced agreement with Randstad, Monster has
suspended any prior guidance and will not hold a conference call
for its third quarter 2016 financial results.
About Monster Worldwide
Monster Worldwide, Inc. (NYSE:
MWW) is a global leader in connecting people to jobs, wherever they
are. For more than 20 years, Monster has helped people
improve their lives with better jobs, and employers find the best
talent. Today, the Company offers services in more than 40
countries, providing some of the broadest, most sophisticated job
seeking, career management, recruitment and talent management
capabilities. Monster continues its pioneering work of
transforming the recruiting industry with advanced technology using
intelligent digital, social and mobile solutions, including our
flagship website monster.com® and a vast array of products and
services. For more information visit
http://monster.com/about.
Special Note: The statements in this release
that are not strictly historical, including, without limitation,
statements regarding the Company's strategic direction, prospects
and future results, the planned transaction with Randstad, the
expected timetable for completing the planned transaction and any
other statements about the future expectations, beliefs, goals,
plans or prospects of the board or management of the Company
constitute forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements involve
certain risks and uncertainties and, therefore, actual results may
differ materially from what is expressed or implied herein. Factors
that could cause results to differ materially from those expressed
or implied by such forward-looking statements include, but are not
limited to, uncertainties as to the timing of completion of the
planned transaction, the ability to obtain requisite regulatory
approvals, the tender of a majority of the outstanding shares of
common stock of the Company, the possibility that competing offers
will be made and the satisfaction or waiver of the other conditions
to the consummation of the planned transaction; the potential
impact of the announcement or consummation of the planned
transaction on relationships, including with employees, suppliers
and customers, economic and other conditions in the markets in
which we operate, risks associated with acquisitions or
dispositions, competition, and the other risks discussed in our
Form 10-K, the tender offer documents filed and to be filed by
Randstad North America, Inc., Randstad Holding nv and the Company
and our other filings made with the Securities and Exchange
Commission, which discussions are incorporated into this release by
reference. Many of the factors that will determine the Company's
future results are beyond the ability of management to control or
predict. Readers should not place undue reliance on the
forward-looking statements in this release as they reflect
management's views only as of the date hereof. The Company
undertakes no obligation to revise or update any of the
forward-looking statements contained in this release or to make any
other forward-looking statements, whether as a result of new
information, future events or otherwise.
Additional Information and Where to Find It
Randstad
North America, Inc.'s tender offer for shares of the Company's
common stock commenced on September 6,
2016, and, in connection with the offer, Randstad North
America, Inc., its parent, Randstad Holding nv, and its subsidiary,
Merlin Global Acquisition, Inc., filed a tender offer statement on
Schedule TO with the SEC and the Company filed a
solicitation/recommendation statement on Schedule 14D-9 with the
SEC. The Company's stockholders are strongly advised to read the
tender offer statement (including the offer to purchase, letter of
transmittal and related tender offer documents) and the related
solicitation/recommendation statement on Schedule 14D-9 filed by
the Company with the SEC because they contain important information
about the proposed transaction. These documents are available
at no charge on the SEC's website at www.sec.gov. In addition,
copies of the offer to purchase, letter of transmittal and other
related materials are available free of charge by contacting
MacKenzie Partners, Inc., the information agent for the tender
offer, toll-free at (800) 322-2885 (or at +1 212-929-5500 collect
if you are located outside the U.S. and Canada), or by email to
monster@mackenziepartners.com
The Company and its directors and executive officers
may be deemed to be participants in the solicitation of consent
revocations from the Company's stockholders in connection with the
consent solicitation conducted by MediaNews Group, Inc. and certain
of its affiliates. Information about the Company's officers and
directors and their ownership of the Company's shares is set forth
in the proxy statement for The Company's 2016 Annual Meeting of
Stockholders, which was filed with the SEC on April 28, 2016. Information about the Company's
officers and directors is set forth in the Company's Annual Report
on Form 10-K for the year ended December 31,
2015, which was filed with the SEC on February 11, 2016. Investors and security holders
may obtain more detailed information regarding the direct and
indirect interests of the participants in the solicitation of
consent revocations in connection with the consent solicitation
conducted by MediaNews Group, Inc. and certain of its affiliates by
reading the definitive consent revocation statement filed by the
Company with the SEC on October 18,
2016. The Company's stockholders are strongly advised to
read such consent revocation statement (including any amendments or
supplements thereto) and any other relevant documents that the
Company will file with the SEC because they contain important
information. These documents are available at no charge on the
SEC's website at www.sec.gov.
Notes Regarding the Use of Non-GAAP Financial
Measures
The Company has provided certain Non-GAAP financial information
as additional information for its operating results. These
measures are not in accordance with, or an alternative for,
generally accepted accounting principles ("GAAP") and may be
different from Non-GAAP measures reported by other companies.
The Company believes that its presentation of Non-GAAP measures
provides useful information to management and investors regarding
certain financial and business trends relating to its financial
condition and results of operations.
Non-GAAP revenue, operating expenses, operating income (loss),
operating margin, income (loss) from continuing operations, income
from discontinued operations, net of tax, net income (loss), net
income (loss) attributable to Monster Worldwide, Inc., and diluted
earnings (loss) per share attributable to Monster Worldwide, Inc.
all exclude certain pro-forma items including: non-cash stock based
compensation expense; non-cash impairment charges; transaction
costs relating to the merger agreement entered into with a
subsidiary of Randstad Holding nv (AMS: RAND) on August 8, 2016; net settlement charges in
connection with a settlement term sheet executed in the Talentbin
litigation referred to in Note 18 – Commitments and
Contingencies in the Notes to the Consolidated Financial
Statements in Item 1 of the Q2 2016 Form 10-Q filed on August 9, 2016; costs incurred in connection with
the Company's restructuring programs; certain separation charges;
certain management advisory fees; amortization of the debt discount
and deferred financing costs associated with our 3.50% convertible
senior notes due 2019; the results of our former South Korean
subsidiary as it has been classified as discontinued operations;
and gain on partial sale of an equity method investment.
In the first quarter of the calendar year 2015, the Company
began to utilize a fixed long-term projected Non-GAAP tax rate for
reporting operating results and for planning, forecasting, and
analyzing future periods. This change provides better
consistency across the interim reporting periods by eliminating the
effects of non-recurring and period-specific items. When
projecting this long-term rate, the Company evaluated a five-year
financial projection comprising the current and the next four years
that excludes the income tax effects of the Non-GAAP pre-tax items
described above, eliminates the effects of non-recurring and period
specific items which can vary in size and frequency, and is
reflective of the anticipated future geographic mix of income among
tax jurisdictions. The projected rate also assumes no new
acquisitions or disposals in the five-year period, eliminates the
effect of tax valuation allowances, and takes into account other
factors including the Company's current tax structure, its existing
tax positions in various jurisdictions and key legislation in major
jurisdictions where the Company operates. Through Q2 2016,
the Non-GAAP tax rate was 35%. The Company re-evaluates this
long-term rate on an annual basis or if any significant events that
may materially affect this long-term rate occur. This
long-term rate could be subject to change for a variety of reasons,
which may include (but are not limited to) for example, significant
changes in the geographic earnings mix including future acquisition
or disposition activity, having less income than anticipated, or
fundamental tax law changes in major jurisdictions where the
Company operates. As a result of the Company's recent
operating results and the impact those results have on the
Company's forecasts, the Non-GAAP tax rate was re-evaluated and a
40% rate was utilized in Q3 2016.
Non-GAAP diluted shares includes the impact, based on the
average share price for the period, of the Company's outstanding
capped call transactions, which are anti-dilutive in GAAP earnings
per share, but are expected to mitigate the dilutive effect of the
Company's 3.50% convertible senior notes due 2019.
The Company uses these Non-GAAP measures for reviewing the
ongoing results of the Company's core business operations and in
certain instances, for measuring performance under certain of the
Company's incentive compensation plans. These Non-GAAP
measures may not be comparable to similarly titled measures
reported by other companies.
Cash EBITDA is defined as income (loss) from continuing
operations or net income (loss), as applicable, before income
(loss) in equity interests, net, provision for (benefit from)
income taxes, interest and other, net, gain on partial sale of
equity method investment, depreciation, amortization, non-cash
compensation expense and non-cash impairment charges. The
Company considers Cash EBITDA to be an important indicator of its
operational strength which the Company believes is useful to
management and investors in evaluating its operating
performance. Cash EBITDA is a Non-GAAP measure and may not be
comparable to similarly titled measures reported by other
companies.
Adjusted EBITDA is defined as income (loss) from continuing
operations or net income (loss), as applicable, before income
(loss) in equity interests, net, provision for (benefit from)
income taxes, interest and other, net, gain on partial sale of
equity method investment, depreciation, amortization, non-cash
compensation expense, non-cash impairment charges, costs incurred
with the Company's restructuring programs, and the impact of the
pro-forma items discussed above. The Company considers
Adjusted EBITDA to be an important indicator of its operational
strength which the Company believes is useful to management and
investors in evaluating its operating performance. Adjusted
EBITDA is a Non-GAAP measure and may not be comparable to similarly
titled measures reported by other companies.
MONSTER WORLDWIDE,
INC.
|
UNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
144,753
|
|
$
167,082
|
|
$
453,452
|
|
$
507,694
|
|
|
|
|
|
|
|
|
|
Salaries and
related
|
|
79,518
|
|
79,787
|
|
235,984
|
|
254,500
|
Office and
general
|
|
47,924
|
|
43,638
|
|
134,092
|
|
131,430
|
Marketing and
promotion
|
|
28,287
|
|
30,044
|
|
91,195
|
|
91,091
|
Restructuring and
other special charges
|
|
-
|
|
2,780
|
|
-
|
|
28,787
|
Goodwill
impairment
|
|
147,400
|
|
-
|
|
289,402
|
|
-
|
Impairment of other
assets
|
|
34,835
|
|
-
|
|
38,235
|
|
-
|
Total operating
expenses
|
|
337,964
|
|
156,249
|
|
788,908
|
|
505,808
|
|
|
|
|
|
|
|
|
|
Operating (loss)
income
|
|
(193,211)
|
|
10,833
|
|
(335,456)
|
|
1,886
|
|
|
|
|
|
|
|
|
|
Gain on partial sale
of equity method investment
|
|
-
|
|
-
|
|
-
|
|
8,849
|
Interest and other,
net
|
|
(3,195)
|
|
(3,674)
|
|
(9,601)
|
|
(10,289)
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes and (loss) income in equity interests
|
|
(196,406)
|
|
7,159
|
|
(345,057)
|
|
446
|
|
|
|
|
|
|
|
|
|
Benefit from income
taxes
|
|
(16,124)
|
|
(2,361)
|
|
(42,252)
|
|
(14,487)
|
(Loss) income in
equity interests, net
|
|
(222)
|
|
249
|
|
(13)
|
|
321
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
(180,504)
|
|
9,769
|
|
(302,818)
|
|
15,254
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
-
|
|
2,163
|
|
-
|
|
6,005
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(180,504)
|
|
11,932
|
|
(302,818)
|
|
21,259
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
-
|
|
(1,512)
|
|
-
|
|
(3,712)
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Monster Worldwide, Inc.
|
|
$
(180,504)
|
|
$
10,420
|
|
$
(302,818)
|
|
$
17,547
|
|
|
|
|
|
|
|
|
|
*Basic (loss)
earnings per share attributable to Monster Worldwide,
Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
(2.03)
|
|
$
0.11
|
|
$
(3.41)
|
|
$
0.17
|
Income from
discontinued operations, net of tax
|
|
-
|
|
0.01
|
|
-
|
|
0.03
|
Basic (loss)
earnings per share attributable to Monster Worldwide,
Inc.
|
|
$
(2.03)
|
|
$
0.12
|
|
$
(3.41)
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
*Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
(2.03)
|
|
$
0.10
|
|
$
(3.41)
|
|
$
0.16
|
Income from
discontinued operations, net of tax
|
|
-
|
|
0.01
|
|
-
|
|
0.02
|
Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.
|
|
$
(2.03)
|
|
$
0.11
|
|
$
(3.41)
|
|
$
0.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
88,932
|
|
90,340
|
|
88,846
|
|
89,853
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
88,932
|
|
96,839
|
|
88,846
|
|
94,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
(loss) income from continuing operations to Cash EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
(180,504)
|
|
$
9,769
|
|
$
(302,818)
|
|
$
15,254
|
Loss (income) in
equity interests, net
|
|
222
|
|
(249)
|
|
13
|
|
(321)
|
Benefit from income
taxes
|
|
(16,124)
|
|
(2,361)
|
|
(42,252)
|
|
(14,487)
|
Interest and other,
net
|
|
3,195
|
|
3,674
|
|
9,601
|
|
10,289
|
Goodwill
impairment
|
|
147,400
|
|
-
|
|
289,402
|
|
-
|
Impairment of other
assets
|
|
34,835
|
|
-
|
|
38,235
|
|
-
|
Gain on partial sale
of equity method investment
|
|
-
|
|
-
|
|
-
|
|
(8,849)
|
Depreciation and
amortization of intangibles
|
|
10,956
|
|
11,086
|
|
31,211
|
|
33,685
|
Stock-based
compensation
|
|
437
|
|
3,368
|
|
3,488
|
|
11,386
|
Restructuring
non-cash charges
|
|
-
|
|
-
|
|
-
|
|
4,226
|
Cash
EBITDA
|
|
$
417
|
|
$
25,287
|
|
$
26,880
|
|
$
51,183
|
Facility
charges
|
|
676
|
|
-
|
|
676
|
|
-
|
Management advisory
fees
|
|
-
|
|
-
|
|
3,752
|
|
-
|
Net costs associated
with a legal settlement term sheet
|
|
900
|
|
-
|
|
900
|
|
-
|
Transaction
costs
|
|
3,442
|
|
-
|
|
3,442
|
|
-
|
Separation
costs
|
|
-
|
|
-
|
|
417
|
|
2,000
|
Restructuring and
other special charges, less non-cash items
|
|
-
|
|
2,780
|
|
-
|
|
24,561
|
Adjusted
EBITDA
|
|
$
5,435
|
|
$
28,067
|
|
$
36,067
|
|
$
77,744
|
|
|
|
|
|
|
|
|
|
*(Loss) earnings
per share may not add in certain periods due to
rounding.
|
|
MONSTER WORLDWIDE,
INC.
|
|
|
UNAUDITED
STATEMENTS OF OPERATIONS AND NON-GAAP
RECONCILIATIONS
|
|
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2016
|
|
Three Months Ended
September 30, 2015
|
|
|
|
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
144,753
|
|
$
-
|
|
$
144,753
|
|
$
167,082
|
|
$
-
|
|
$
167,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
related
|
|
79,518
|
|
(437)
|
a
|
79,081
|
|
79,787
|
|
(3,368)
|
a
|
76,419
|
|
|
Office and
general
|
|
47,924
|
|
(5,018)
|
c
|
42,906
|
|
43,638
|
|
-
|
|
43,638
|
|
|
Marketing and
promotion
|
|
28,287
|
|
-
|
|
28,287
|
|
30,044
|
|
-
|
|
30,044
|
|
|
Restructuring and
other special charges
|
|
-
|
|
-
|
|
-
|
|
2,780
|
|
(2,780)
|
b
|
-
|
|
|
Goodwill
impairment
|
|
147,400
|
|
(147,400)
|
d
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Impairment of other
assets
|
|
34,835
|
|
(34,835)
|
e
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total
operating expenses
|
|
337,964
|
|
(187,690)
|
|
150,274
|
|
156,249
|
|
(6,148)
|
|
150,101
|
|
Operating (loss)
income
|
|
(193,211)
|
|
187,690
|
|
(5,521)
|
|
10,833
|
|
6,148
|
|
16,981
|
|
|
Operating
margin
|
|
-133.5%
|
|
|
|
-3.8%
|
|
6.5%
|
|
|
|
10.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other,
net
|
|
(3,195)
|
|
1,173
|
f
|
(2,022)
|
|
(3,674)
|
|
1,252
|
f
|
(2,422)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes and (loss) income in equity
interests
|
|
(196,406)
|
|
188,863
|
|
(7,543)
|
|
7,159
|
|
7,400
|
|
14,559
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes
|
|
(16,124)
|
|
13,107
|
h
|
(3,017)
|
|
(2,361)
|
|
7,472
|
h
|
5,111
|
|
|
(Loss) income in
equity interests, net
|
|
(222)
|
|
-
|
|
(222)
|
|
249
|
|
-
|
|
249
|
|
(Loss) income from
continuing operations
|
|
(180,504)
|
|
175,756
|
|
(4,748)
|
|
9,769
|
|
(72)
|
|
9,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
-
|
|
-
|
|
-
|
|
2,163
|
|
(2,163)
|
i
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(180,504)
|
|
175,756
|
|
(4,748)
|
|
11,932
|
|
(2,235)
|
|
9,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
-
|
|
-
|
|
-
|
|
(1,512)
|
|
1,512
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Monster Worldwide, Inc.
|
|
$
(180,504)
|
|
$
175,756
|
|
$
(4,748)
|
|
$
10,420
|
|
$
(723)
|
|
$
9,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
(2.03)
|
|
$
1.98
|
|
$
(0.05)
|
|
$
0.10
|
|
$
0.01
|
|
$
0.11
|
|
Income from
discontinued operations, net of tax
|
|
-
|
|
-
|
|
-
|
|
0.01
|
|
(0.01)
|
|
-
|
|
*Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.:
|
|
$
(2.03)
|
|
$
1.98
|
|
$
(0.05)
|
|
$
0.11
|
|
$
(0.00)
|
|
$
0.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
88,932
|
|
-
|
|
88,932
|
|
96,839
|
|
(5,872)
|
j
|
90,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
September 30, 2016
|
|
Nine Months Ended
September 30, 2015
|
|
|
|
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
As
Reported
|
|
Non GAAP
Adjustments
|
|
Consolidated
Non GAAP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
453,452
|
|
$
-
|
|
$
453,452
|
|
$
507,694
|
|
$
-
|
|
$
507,694
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
related
|
|
235,984
|
|
(3,905)
|
a
|
232,079
|
|
254,500
|
|
(13,385)
|
a
|
241,115
|
|
|
Office and
general
|
|
134,092
|
|
(8,770)
|
c
|
125,322
|
|
131,430
|
|
-
|
|
131,430
|
|
|
Marketing and
promotion
|
|
91,195
|
|
-
|
|
91,195
|
|
91,091
|
|
-
|
|
91,091
|
|
|
Restructuring and
other special charges
|
|
-
|
|
-
|
|
-
|
|
28,787
|
|
(28,787)
|
b
|
-
|
|
|
Goodwill
impairment
|
|
289,402
|
|
(289,402)
|
d
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Impairment of other
assets
|
|
38,235
|
|
(38,235)
|
e
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Total
operating expenses
|
|
788,908
|
|
(340,312)
|
|
448,596
|
|
505,808
|
|
(42,172)
|
|
463,636
|
|
Operating income
(loss)
|
|
(335,456)
|
|
340,312
|
|
4,856
|
|
1,886
|
|
42,172
|
|
44,058
|
|
|
Operating
margin
|
|
-74.0%
|
|
|
|
1.1%
|
|
0.4%
|
|
|
|
8.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on partial sale
of equity method investment
|
|
-
|
|
-
|
|
-
|
|
8,849
|
|
(8,849)
|
g
|
-
|
|
|
Interest and other,
net
|
|
(9,601)
|
|
3,305
|
f
|
(6,296)
|
|
(10,289)
|
|
3,789
|
f
|
(6,500)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
before income taxes and income (loss) in equity
interests
|
|
(345,057)
|
|
343,617
|
|
(1,440)
|
|
446
|
|
37,112
|
|
37,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Benefit from)
provision for income taxes
|
|
(42,252)
|
|
41,371
|
h
|
(881)
|
|
(14,487)
|
|
27,649
|
h
|
13,162
|
|
|
(Loss) income in
equity interests, net
|
|
(13)
|
|
-
|
|
(13)
|
|
321
|
|
-
|
|
321
|
|
(Loss) income from
continuing operations
|
|
(302,818)
|
|
302,246
|
|
(572)
|
|
15,254
|
|
9,463
|
|
24,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
discontinued operations, net of tax
|
|
-
|
|
-
|
|
-
|
|
6,005
|
|
(6,005)
|
i
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(302,818)
|
|
302,246
|
|
(572)
|
|
21,259
|
|
3,458
|
|
24,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest
|
|
-
|
|
-
|
|
-
|
|
(3,712)
|
|
3,712
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Monster Worldwide, Inc.
|
|
$
(302,818)
|
|
$
302,246
|
|
$
(572)
|
|
$
17,547
|
|
$
7,170
|
|
$
24,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
$
(3.41)
|
|
$
3.40
|
|
$
(0.01)
|
|
$
0.16
|
|
$
0.11
|
|
$
0.27
|
|
Income from
discontinued operations, net of tax
|
|
-
|
|
-
|
|
-
|
|
0.02
|
|
(0.02)
|
|
-
|
|
*Diluted (loss)
earnings per share attributable to Monster Worldwide,
Inc.:
|
|
(3.41)
|
|
$
3.40
|
|
(0.01)
|
|
0.19
|
|
$
0.09
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
88,846
|
|
-
|
|
88,846
|
|
94,573
|
|
(3,714)
|
j
|
90,859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note Regarding Non
GAAP Adjustments:
|
|
The financial
information included herein contains certain Non-GAAP financial
measures. This information is not intended to be used in
place of the financial information prepared and presented in
accordance with GAAP, nor is it intended to be considered in
isolation. We believe that the above presentation of Non-GAAP
measures provide useful information to management and investors
regarding certain core operating and business trends relating to
our results of operations, exclusive of certain restructuring
related and other special charges.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non GAAP
adjustments consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
a
|
Costs related to
stock based compensation. Additionally, the Company incurred $0.4
million of separation charges in Q1 2016 primarily relating to the
reorganization of the sales force in North
America.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
b
|
Restructuring related
charges pertaining to the "Reallocate to Accelerate" program
announced in February 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
c
|
Charges incurred in
Q3 2016 primarily related to legal and other professional fees of
$3.4 million associated with the merger agreement entered into with
a subsidiary of Randstad Holdings nv (AMS:RAND) on August 8,
2016. In addition, during Q3 2016, the Company recognized net
settlement charges of $0.9 million in connection with a settlement
term sheet executed in the Talentbin litigation referred to in the
Q2 2016 Form 10-Q filed on August 9, 2016. Further, the Company
recognized $0.7 million of charges related to exited facilities
during Q3 2016. In the six months ended June 30, 2016, the
Company incurred $3.8 million of charges primarily related to
management advisory fees. This engagement ended during Q2 2016 and
no additional fees are expected in future periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
d
|
As referred to in the
Q2 2016 Form 10-Q, the Company completed a formal goodwill
impairment analysis in accordance with ASC 350, Intangibles –
Goodwill and Other, during Q3 2016. This analysis resulted in
the recognition of a pre-tax impairment charge of $147.4 million,
or $119.2 million on a net of tax basis, recognized in the
Careers-North America reporting unit during Q3 2016. The
recognition of this additional impairment charge brings the total
goodwill impairment recognized during the nine months ended
September 30, 2016 to $289.4 million, or $234.1 million on a net of
tax basis, in the Careers-North America reporting unit. These
charges do not impact our liquidity, cash flows from operations,
future operations, or compliance with debt covenants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
e
|
The completion of a
formal goodwill impairment analysis during Q3 2016 triggered the
completion of an impairment analysis of the Company's technology
fixed asset included in the Careers – North America reporting unit
during the quarter. This analysis resulted in the recognition
of a pre-tax impairment charge of $31.4 million, or $19.0 million
on a net of tax basis, during Q3 2016. In addition, the
Company recognized a pre-tax impairment charge of $3.5 million
related to an amortizable intangible asset during Q3 2016.
During Q2 2016, the Company recognized a pre-tax impairment charge
of $3.4 million related to two indefinite-lived intangible assets.
The total pre-tax impairment charge related to intangible assets,
excluding goodwill, was $6.9 million during the nine months ended
September 30, 2016. These charges do not impact our
liquidity, cash flows from operations, future operations, or
compliance with debt covenants
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
f
|
Non-GAAP interest
expense related to the debt discount and amortization of the
deferred financing costs related to the Company's convertible notes
due 2019. The Company also recognized a gain of approximately $0.3
million for the sale of domains during Q2 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
g
|
Gain on partial sale
of equity method investment during Q1 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
h
|
Beginning in Q1 2015,
the Non-GAAP income tax provision is calculated using a fixed
long-term projected Non-GAAP tax rate of 35% as applied to Non-GAAP
pre-tax income. In the third quarter of 2016, as a result of recent
operating results and the impact those results have on the
Company's forecasts, the fixed long term projected Non-GAAP tax
rate was increased to 40%.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
i
|
Non-GAAP adjustment
relates to the sale of our former subsidiary in South Korea in
October 2015, and primarily includes the operations of our former
subsidiary.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
j
|
Non-GAAP adjustment
includes the impact, based on the average share price for the
period, of the Company's outstanding capped call transactions,
which are anti-dilutive in GAAP earnings per share but are expected
to mitigate the dilutive effect of the Company's convertible notes
due 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*(Loss) earnings per
share may not add in certain periods due to
rounding.
|
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