Fourth Quarter Results
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Revenue from Continuing Operations of $211 million
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GAAP Loss Per Share from Continuing Operations of ($0.05)
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Non-GAAP EPS from Continuing Operations of $0.08
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Full Year 2012 Results
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Revenue from Continuing Operations of $890 million
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GAAP EPS from Continuing Operations of $0.51
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Non-GAAP EPS from Continuing Operations of $0.38
Implementing Previously Announced Corporate Restructuring
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Completed sale of ChinaHR to Saongroup; retains 10% minority stake in combined China entity
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Exited operations in Brazil, Mexico and Turkey
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Reducing operating expenses by $130 million on an annualized basis
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Concentrating resources on large and most profitable core markets in North America, Europe,Korea and India
Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the fourth quarter and twelve months ended December 31, 2012.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “During the fourth quarter, we implemented a series of actions designed to improve profitability and cash flow, consistent with our previously announced restructuring. As a leaner, more focused company, we are concentrating our resources on our core markets and are aggressively taking the steps necessary to strengthen our business. Our advanced product offerings, robust government business and a leading traffic position provide a solid foundation for future growth as the global economy recovers.”
“On the strategic alternatives front, the process continues and we will respond quickly if an opportunity arises. We are not able to anticipate when or whether our Board will have a concrete transaction to consider and we will only comment further if and when this occurs,” Iannuzzi concluded.
Full Year 2012 Business Highlights
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Monster provides services to more than 300,000 customers globally, including 95% of the Fortune 1000.
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According to comScore Media Metrix, Monster enjoyed the leading U.S. traffic position in the Career Services & Development category throughout the majority of 2012 and ended the year with over 21 million monthly Unique Visitors.
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Monster’s Government Solutions business, which accounts for more than 10% of total bookings, increased approximately 40% year over year, including the Company’s multi-year contract with the United Kingdom Government’s Department for Work and Pensions (DWP).
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SeeMore® - the world’s first cloud-based semantic search and analytics recruiting platform – was named one of the top products of 2012 by Human Resource Executive® magazine. The award was announced at the 15th annual HR Technology® Conference in Chicago on October 8, 2012.
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On a global basis, business derived from the Company’s advanced and proprietary product offerings, including Career Ad Network®, Power Resume Search® and SeeMore® increased in the double-digit percentage range compared to the same period a year ago.
Corporate Restructuring Update
The Company is implementing its previously announced corporate restructuring program to focus on its core business and reduce its cost structure in order to improve profitability and cash flow. Since the announcement of the restructuring on November 8, 2012, the Company has implemented the following actions:
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Completed the sale of ChinaHR to Saongroup, under which Monster has taken a 10% minority stake in the combined China business of Saongroup.
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Exited operations in Brazil, Mexico and Turkey and classified these businesses as discontinued operations in the fourth quarter and full year results.
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Redeployed expenses into marketing and sales in Monster’s core markets, while reducing the run rate of operating expenses.
As a result of the actions described above, Monster is on track to reduce operating expenses by approximately $130 million on an annualized basis. In association with these actions, the Company recorded pre-tax charges of $23 million, of which $15 million was included in continuing operations and $8 million was included in discontinued operations in the fourth quarter 2012. The Company expects additional pre-tax charges in the range of $27 million to $37 million to be incurred in the first half 2013.
Fourth Quarter 2012 Results
Total bookings from continuing operations were $261 million, compared to $300 million in the same period a year ago. On a year over year basis, currency translation had a $0.8 million negative impact on bookings in the fourth quarter 2012. The year over year decline in total bookings is primarily attributable to continued weakness in Europe, which has been negatively impacted by global economic challenges, partially offset by strength in North America’s e-commerce, staffing and newspaper channels. Revenue from continuing operations was $211 million, compared to fourth quarter 2011 revenue of $235 million. On a year over year basis, currency translation had a $1.3 million negative impact on revenue in the fourth quarter 2012. Historical data on bookings and revenue from continuing operations for prior quarters is available in the Company’s supplemental financial information.
Consolidated GAAP operating expenses from continuing operations of $212 million compares to $208 millionin the fourth quarter 2011. Net loss from continuing operations for the fourth quarter was $5.3 million, or a loss per share of $0.05. In the fourth quarter 2011, the Company reported net income from continuing operations of $20 million, or $0.16 per share. 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 from continuing operations of $8.7 million, or $0.08 per share, compares to $22 million, or $0.18 per share in the fourth quarter 2011. Non-GAAP operating expenses of $196 milliondecreased 4% year over year.
The consolidated loss for the fourth quarter 2012 was $73 million or a loss per share of $0.66 per share compared to consolidated net income of $11 million or earnings per share of $0.09 for the same period a year ago. The consolidated loss for the fourth quarter 2012 includes a loss from discontinued operations, net of tax, of $68 million, or a loss per share of $0.61, of which $53 million is non-cash asset write-offs.
Cash and cash equivalents were $148 million as of December 31, 2012 compared to $250 million as ofDecember 31, 2011. Net operating cash flow in the quarter was $17 million. Excluding results from ChinaHR,Brazil, Mexico and Turkey, deferred revenue was $351 million compared to $358 million in the same period a year ago.
Full Year Results
Monster Worldwide reported total revenue from continuing operations of $890 million for the twelve months ended December 31, 2012 compared to $994 million in the same period last year, which included $22 millionfrom IAF’s arbitrage lead generation business and a $2.7 million purchase accounting adjustment related to the HotJobs acquisition. The Company reported GAAP earnings from continuing operations of $58 million, or$0.51 per diluted share, compared to GAAP earnings of $66 million, or $0.53 per diluted share, in the prior period.
The consolidated loss for the year ended December 31, 2012 was $259 million or $2.27 per share compared to consolidated net income of $54 million or $0.43 per share for the same period in 2011. The consolidated loss for 2012 includes a loss from discontinued operations, net of tax, of $317 million, of which $279 million is non-cash asset write-offs.
Company Provides Q1 EPS Guidance
First quarter 2013 EPS from continuing operations is expected to be in the range of $0.06 to $0.10.
