- Fourth Quarter Highlights
- Revenue Increases Sequentially to $199 Million Driven by Growth in North America and Europe
- Cash Flow from Operations of $25 Million
- Consolidated EBITDA of $31 Million; Careers – North America EBITDA Margin of 24%
- Non-GAAP EPS of $0.11; GAAP Loss Per Share of ($0.21) includes $0.26 of Non-Cash Income Tax Expense Primarily Related to South Korean Transaction
- Closed Sale of Minority Interest in South Korean Business for an Aggregate Purchase Price of $90 Million with Net Cash Proceeds of $86.5 Million
- Repurchased 8.2 Million Shares of Common Stock in the Fourth Quarter; Company Has Repurchased Approximately 20% of Outstanding Shares in 2013
Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter ended December 31, 2013.
“We are pleased with our fourth quarter financial results as we delivered sequential revenue growth in North America and Europe reflecting increased demand for Monster’s products. We were encouraged that the momentum we saw in the second and third quarters of 2013 in North America and parts of Europe accelerated in the fourth quarter, and we believe these positive sales trends will continue into 2014,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “We continue to execute on several important initiatives that we believe will significantly improve our market share and increase profitability. We look forward to discussing these initiatives at our Investor Meeting on May 14th. Finally, consistent with our objective to enhance shareholder value, we repurchased $46 millionworth of our shares in the quarter and continue to believe that repurchasing shares represents an extremely attractive investment.”
Fourth Quarter 2013 Results
Revenue of $199 million increased sequentially from $197 million in the third quarter of 2013. Revenue in the fourth quarter of 2012 was $211 million. Revenue from the Company’s North American and European operations increased on a sequential basis. Internet Advertising & Fees revenue for the fourth quarter of 2013 was $18 million compared to $19 million in last year’s comparable quarter. Historical quarterly revenue data is available in the Company’s supplemental financial information.
Consolidated GAAP operating expenses of $189 million decreased 11% compared to $212 million in the fourth quarter 2012. Consolidated net loss for the fourth quarter of 2013 was $20 million, or ($0.21) per share, which included $26 million of non-cash tax expense primarily associated with the completion of the previously announced sale of the Company’s minority interest in its South Korean business. In the fourth quarter of 2012, the Company reported a net loss of $73 million, or ($0.66) per share, which included a loss from discontinued operations, net of tax, of $68 million.
Non-GAAP net income was $10 million or $0.11 per share, compared to $13 million, or $0.12 per share in the fourth quarter of 2012. Non-GAAP operating expenses of $181 million decreased 5% year over year. EBITDA margin of 16% was led by Careers-North America with a 24% margin. 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.
Net cash provided by operating activities in the quarter was $25 million and free cash flow was $17 million. Deferred revenue grew sequentially to $342 million or 8% compared to $316 million as of September 30, 2013. Deferred revenue as of December 31, 2012 grew 6% on a sequential basis. The Company ended the quarter with total available liquidity of approximately $270 million, which includes $86.5 million of net proceeds associated with the South Korea transaction which closed in December 2013.
During the fourth quarter 2013, Monster repurchased 8.2 million shares of its common stock at an average price of $5.63 per share, for a total of $46 million. At December 31, 2013, there was approximately $93 million remaining under the Company’s previously announced $200 million share repurchase program. Year to date, the Company has repurchased 20.6 million shares, or approximately 20% of its total shares outstanding.
Full Year Results
Monster Worldwide reported total revenue of $808 million for the twelve months ended December 31, 2013 compared to $890 million in the same period last year, a 9% decrease. Monster Careers revenue decreased 10% to $735 million compared with $814 million in the 2012 period. Internet Advertising & Fees reported revenue of $73 million compared to $76 million in the prior year period. The Company reported net loss of $0.5 million, compared to a net loss of $259 million, or ($2.27) per share, in the prior period.
Company Provides Q1 EPS Guidance
First quarter 2014 Non-GAAP EPS from continuing operations is expected to be in the range of $0.06 to $0.10, which excludes approximately $9 million of stock-based compensation.
Historical data on Non-GAAP EPS excluding stock-based compensation expense is available in the Company’s supplemental financial information.