Careers – North America Bookings Increased 14% Year Over Year Due to Strong Demand for Advanced Technology Product Suite, Particularly in Government And Staffing
Global Bookings of $242 Million Decreased 4% Year Over Year
GAAP EPS of $0.04, Non-GAAP EPS of $0.06
Total Liquidity of $318 Million After Returning $26 Million to Shareholders Through Share Repurchases During Q2 and $101 Million Since Inception of Current Program
(BUSINESS WIRE)-- Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the second quarter ended June 30, 2012.
Business Highlights
On a global basis, business derived from the Company’s advanced and proprietary product offerings, including Career Ad Network® and Power Resume Search®, increased in the double-digit range compared to the same period a year ago.
Careers – North America bookings increased 14% on a year over year basis due primarily to bookings growth in the Government Solutions and Staffing and Newspapers verticals.
Strength in the Government Solutions business was driven by the expansion of existing contracts as well as new awards from Federal, State and Local government agencies in North America.
Monster signed a multi-year agreement with Kforce Inc. to deploy Power Resume Search®, using Monster’s 6Sense Semantic Search technology, across Kforce's entire organization.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “During the quarter, we continued to execute our strategy and are gratified by the increasing customer acceptance of our advanced technologies. This resulted in double-digit year over year bookings growth in North America and helped to buffer weakness in Europe and Asia. As a result of our restructuring announced earlier in the year, we were able to improve profitability sequentially while increase marketing efforts designed to accelerate adoption of our new products.”
“We continue to thoroughly explore strategic alternatives as previously announced in March and that process is progressing as planned,” concluded Iannuzzi.
Second Quarter 2012 Results
(For comparison purposes, non-GAAP bookings, revenue and operating expense in the second quarter 2011 exclude the $11 million impact of the arbitrage lead generation activity.)
Bookings of $242 million decreased 4% compared to second quarter 2011 bookings of $251 million. On a constant currency basis, bookings were unchanged compared to the year ago period. Careers – North America bookings increased by 14% year over year due to continued strength in the Company’s Government Solutions business, Staffing and Newspaper verticals. This growth was offset by weakness in Europe and Asia, both of which have been negatively impacted by global economic challenges and currency translation. Historical data on bookings for prior quarters is available in the Company’s supplemental financial information.
Revenue in the second quarter 2012 was $237 million. This compares to second quarter 2011 GAAP revenue of $270 million and non-GAAP revenue of $259 million. On a year over year basis, currency translation had a $9.2 million negative impact on revenue in the second quarter 2012.
Global Careers revenue of $217 million compares to second quarter 2011 Global Careers revenue of $236 million, a year over year decline of 8%. On a constant currency basis, Global Careers revenue decreased 4% year over year. Careers – North America revenue was $116 million, a decrease of 5% compared to Careers –North America revenue of $123 million in the second quarter 2011. Careers – International revenue was $101 million, a decrease of 11% compared to Careers – International of $113 million in the same period a year ago.
IAF revenue of $20 million compares to $34 million in the second quarter 2011. As previously disclosed, the Company decided to no longer engage in arbitrage lead generation activity as of July 1, 2011. Excluding $11 million of arbitrage lead generation activity in the second quarter 2011, IAF revenue declined $3 million on a year over year basis.
Consolidated GAAP operating expenses of $228 million compares to $256 million in the first quarter 2012. Net Income was $4.8 million, or $0.04 per share. This compares to a net income of $11 million or $0.09 per share in the prior year period.
GAAP net income for the quarter included $3 million of pre-tax charges associated with the restructuring program announced in January 2012 and costs related to the Company’s decision to explore strategic alternatives. On a per share basis net of tax, this GAAP item had a negative $0.02 impact on the Company’s EPS in the quarter. 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.
Non-GAAP net income of $6.8 million, or $0.06 per share, compares to $11 million, or $0.09 per share in the second quarter 2011. Non-GAAP operating expenses of $225 million declined 7% year over year primarily due to the Company’s continued focus on cost management and benefits from the restructuring program announced in January 2012.
Cash and cash equivalents were $158 million as of June 30, 2012 compared to $250 million as of December 31, 2011. Net operating cash flow was $6.9 million in the quarter. Deferred revenue as of June 30, 2012 was $372 million, compared to $380 million as of December 31, 2011.
Share Repurchase
During the second quarter 2012, Monster repurchased 3.0 million shares of its common stock at an average cost of $8.48 per share, for a total of $26 million. At June 30, 2012, there was approximately $149 million remaining under the Company’s $250 million share repurchase program.
Six Months Results
(For comparison purposes, GAAP revenue in the six months ending June 30, 2011 excludes the $22 million impact of the arbitrage lead generation activity.)
Monster Worldwide reported total revenue of $483 million for the first six months ended June 30, 2012 compared to $509 million in the same period last year, a 5% decrease. Monster Careers revenue decreased 4% to $444 million compared with $464 million in the 2011 period. Internet Advertising & Fees reported revenue of $39 million compared to $45 million in the prior year period. The Company reported earnings of $8.5 million, or $0.07 per share, compared to $11 million, or $0.09 per share, in the prior period.
Company Provides Third Quarter 2012 Outlook
The Company offered the following business outlook based on current available information and expectations as of August 2, 2012.
Q3 2012 Outlook
In light of continued global economic weakness, particularly in Europe, and the impact of currency translation, third quarter bookings are expected to be down 10% to flat compared to the third quarter 2011 of $264 million. Third quarter revenue is expected to be down 12% to down 6% compared to the third quarter 2011 of $259 million. Third quarter earnings are expected to be in the range of $0.02 to $0.07 per share. This compares to third quarter 2011 non-GAAP EPS of $0.13.
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, 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 and no assurance can be given that the Company will achieve, among other things, its outlook with respect to bookings, revenue or earnings per share for the third quarter of 2012. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, 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 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.
To view the full report and tables please click here.
Contacts
Monster Worldwide, Inc.
Investors:
Lori Chaitman, 212-351-7090
Lori.Chaitman@monster.com
Media:
Amy Rosenberg, 917-439-9309
Amy.Rosenberg@bm.com
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