Monster Worldwide reports first quarter 2009 results

Posted By: Staff
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New York, May 1 (ANI/Business Wire India): Monster Worldwide reported financial results for the first quarter ended March 31, 2009.

Sal Iannuzzi, chairman, president and chief executive officer of Monster, said, "As anticipated, the challenging global economy continued to severely impact customer demand during the first quarter of 2009. We were able to leverage the power of our brand to drive awareness and higher levels of user engagement following our new product launch in early January. Our strict and disciplined approach to cost containment enabled us to preserve our liquidity position, maintain necessary investments and report a break-even quarter."

Total revenue declined 31 per cent to 254 million dollars, compared with 366 million dollars in the comparable quarter of 2008. Monster generated 43 per cent of its revenue outside the United States and total revenue was negatively impacted by 27 million dollars from unfavorable foreign exchange rates.

Careers non-GAAP revenue decreased 34 per cent to dollars224 million as North America generated revenue of dollars119 million, compared with dollars184 million in the prior year period. International non-GAAP revenue was dollars105 million, a 32 per cent decline over the prior year period, or a 22 per cent decline excluding currency and the contribution from ChinaHR. Internet Advertising and Fees revenue increased 6 per cent to dollars32 million over last year's first quarter.

Consolidated operating expenses were dollars269 million, and the loss from continuing operations was dollars10 million, or dollars0.09 per share, compared to income from continuing operations of dollars24 million, or dollars0.19 per diluted share, in the comparable 2008 period. Foreign exchange rates negatively impacted consolidated pre-tax operating income by approximately dollars2 million, or dollars0.01 per diluted share.

Operating expenses included approximately dollars27 million of incremental marketing costs that will not recur in any of the next three quarters of 2009.

Income from continuing operations for the three months ended March 31, 2009 includes the following pre-tax pro forma adjustments: dollars11.0 million of expenses associated with the Company's restructuring plan; dollars3.0 million of legal fees, primarily related to the Company's obligation to indemnify former officers for their defense in connection with the ongoing litigation related to historical stock option grant practices; and a dollars1.0 million reduction to total revenue due to the purchase accounting adjustment for ChinaHR.

As a result, the Company recorded total pre-tax pro forma adjustments of dollars15.0 million. These 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.

On a non-GAAP basis, the Company generated revenue of dollars255 million and dollars255 million of operating expenses. In last year's first quarter, revenue was dollars366 million and operating expenses were dollars323 million. Income from continuing operations was essentially break-even, compared to dollars30 million, or dollars0.25 per diluted share, in the prior year.

Monster ended the first quarter of 2009 with total available liquidity of dollars501 million and the Company had net cash and marketable securities of dollars247 million, compared with dollars259 million at the end of the 2008 fourth quarter.

During the quarter, the Company borrowed dollars199 million under its revolving credit facilities, and currently has dollars254 million classified as total debt on the consolidated balance sheet. Cash flow from operating activities was dollars14 million, compared to dollars78 million generated in the prior year period.

Capital expenditures were dollars15 million, a lower rate than previous quarters, representing the gradual decrease in certain investment project spending. Approximately dollars89 million of auction rate securities are classified as a long-term asset on the consolidated balance sheet, and are included in the cash and securities balance as of March 31, 2009.

Monster's deferred revenue balance at March 31, 2009 was dollars345 million, reflecting global economic weakness, compared with last year's first quarter balance of dollars522 million, and dollars414 million reported for the fourth quarter of 2008.

Iannuzzi added, "While the near-term environment continues to be challenging, we believe that Monster is uniquely qualified to serve its customers on a global basis and achieve market share gains. Our global industry leading position, powerful brand and deep financial resources are unparalleled in the online recruitment industry and provide the foundation for long-term future growth when the economy rebounds." (ANI)

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