New York, Feb 1 (ANI/Business Wire India): Monster Worldwide reported financial results for the fourth quarter and year ended December 31, 2007.
Total revenue grew 19 per cent to 354 million dollars in the fourth quarter of 2007 from 299 million dollars in the comparable quarter of 2006.
Monster Careers revenue increased 23 per cent to 317 million dollars, compared with 258 million dollars in last year's fourth quarter, led by International revenue growth of 59 per cent to 143 million dollars.
North American Careers revenue increased 3 per cent to 174 million dollars in the fourth quarter of 2007. Internet advertising and fees revenue was 37 million dollars compared with 40 million dollars in last year's comparable quarter. Consolidated operating income was aided by a 3 million dollars benefit from foreign exchange rates.
Monster Worldwide's deferred revenue balance at December 31, 2007 grew 18% to $524 million over last year's fourth quarter balance of $444 million.
Income from continuing operations was $45 million, or $0.36 per diluted share, in the fourth quarter of 2007, compared to $40 million or $0.31 per diluted share in the 2006 period.
Included in income from continuing operations for the three months ended December 31, 2007 is a $0.05 per diluted share impact from costs associated with the restructuring plan, the ongoing stock option investigation and the security breach of the Company's resume database in August. These pro forma adjustments are described in the "Notes Regarding the Use of Non-GAAP Financial Measures" and are reconciled to the nearest GAAP measure in the accompanying tables.
Excluding these costs, income from continuing operations in the fourth quarter of 2007 was $52 million, or $0.41 per diluted share, compared to $49 million, or $0.37 per diluted share in the prior year.
At December 31, 2007, the Company's net cash position was $578 million compared with $573 million at December 31, 2006. Cash generated from operating activities was $64 million compared to $45 million in the fourth quarter of 2006.
Capital expenditures totaled $16 million in the fourth quarter of 2007. During the quarter, the Company repurchased 2.8 million shares of its common stock for an aggregate cost of $97 million.
For the year ended December 31, 2007, the Company repurchased 7.3 million shares of common stock for a total cost of $252 million.
The Company also announced that its Board of Directors increased the Company's current stock repurchase authorization by an additional $100 million, bringing the total authorization to $450 million. Giving effect to the increased authorization and repurchases to date, the Company currently has $253 million remaining under the program.
Sal Iannuzzi, Chairman and Chief Executive Officer of Monster Worldwide, said "We are pleased with our strong fourth quarter operating and financial performance in the face of more challenging domestic conditions in the employment market. During the quarter, we continued the aggressive strategic investment program, which we initiated early in the third quarter of 2007. This program was designed to re-energize the Monster brand and foster product innovation and enhanced technology. Monster's strong 19% global revenue growth, combined with the savings generated from the restructuring plan that has funded investments, has allowed us to significantly expand our operating margin since implementing the program."
Iannuzzi added, "We are encouraged by the early progress we have made in transforming Monster into a company focused on life improvement. We have taken significant steps to enhance our customers' interaction with Monster by providing better and more timely solutions to meet their changing needs. Despite the current weaker economic environment, we are optimistic about our longer-term growth prospects and believe our strategic investments will position Monster to benefit as market conditions improve over time, further strengthening Monster's industry leadership position. Our goal is to build a solid foundation to foster long-term sustainable value for our customers, shareholders and global associates."
-- Total Revenue Increases 19 per cent to 354 million dollars with Careers International Revenue Growth of 59 per cent
-- Diluted Earnings Per Share from Continuing Operations at 0.36 dollars, Including 0.05 dollars Per Share of Pro Forma Adjustments
-- Restructuring Efficiencies Drive Operating Margin Expansion to 18 per cent, Compared with 15 per cent and 13 per cent in the Third and Second Quarters, Respectively
-- Cash Generated from Operating Activities of 64 million dollars
-- Stock Buyback Authorization Increased by Additional 100 million dollars
Full Year Results
Monster Worldwide reported total revenue of $1,351 million for the year ended December 31, 2007 compared to $1,117 million in 2006, a 21% increase, or 18% before the benefit of foreign exchange rates. Monster Careers revenue grew 24% to $1,195 million compared with $964 million in 2006. Internet Advertising and Fees reported revenue of $156 million, an increase of 2% over the prior year. The Company reported income from continuing operations of $147 million, or $1.13 per diluted share, compared to $154 million or $1.17 per diluted share in the prior year.