| Monster Worldwide Reports Second Quarter and Six Months 2010 Results |
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30/07/2010 17:57 (561 Day 18:42 minutes ago) | |||||
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The FINANCIAL -- Monster Worldwide, Inc. (NYSE:MWW) on July 29 reported financial results for the second quarter and six months ended June 30, 2010.
"As demonstrated by the strong Bookings trends, many of the Company's global customers are expressing increasingly positive sentiment regarding business investments and a greater willingness to expand their labor force. Monster Worldwide remains gratified by the encouraging returns resulting from the introduction of its new products and is excited about new initiatives on the drawing board for the fourth quarter and beyond, which will allow the Company to provide significant additional value to its clients as they manage their most important asset -- their people," Monster Worldwide, Inc. reported.
Second Quarter Results
Bookings, which represent the dollar value of contractual orders received in a quarter, and are considered by the Company to be a key indicator of future revenues, increased 19% to $208 million from $175 million in the second quarter of 2009. Historical data on Bookings for prior quarters is available in the Company's supplemental financial information. Total revenue was flat sequentially at $215 million and down from $224 million reported in last year's second quarter, on a pro forma basis. The 4% decline from last year represents the smallest year over year percentage decrease in revenue since the third quarter of 2008.
Total Careers revenue decreased 3% to $184 million from $190 million in the second quarter of 2009. Careers-North America revenue of $97 million declined 5% compared with $102 million in the prior year period, and was comparable with first quarter 2010 revenue of $97 million. Careers-International revenue decreased 2% to $87 million compared with $89 million in the prior year period and increased slightly over the $86 million reported in the first quarter of 2010. Internet Advertising & Fees revenue was $31 million compared to $33 million reported for both the first quarter of 2010 and second quarter of 2009. During the second quarter, Monster Worldwide generated 43% of its revenue outside the United States.
Consolidated operating expenses were $219 million, and the loss was $3 million, or $0.02 per diluted share, compared to a loss of $1.4 million, or $0.01 per diluted share, in the comparable quarter last year. Foreign exchange rates had a minimal impact on the Company's earnings per share.
The loss for the quarter included pre-tax adjustments of $3.8 million, or $2.8 million net of tax, or $0.02 per share. These adjustments consisted of $5.2 million in transaction costs related to the proposed acquisition of Yahoo ! HotJobs; a $0.5 million charge representing severance costs associated with global staff reductions; partially offset by $1.9 million of gains related to the redemption at par value of certain auction rate securities. These pro forma items are fully 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, Monster Worldwide recorded $213 million of operating expenses, a 1% year over year decline compared to the second quarter of 2009. On a sequential basis, operating expenses declined by 11% due to seasonal higher advertising and employee benefits expense which occurred in the first quarter of 2010. The non-GAAP income was essentially break-even compared to income of $4.2 million, or $0.03 per share, in the prior year period.
Net cash and securities decreased to $251 million from $262 million in the first quarter of 2010 and increased from $235 million in the second quarter of 2009. Capital expenditures were $12 million, comparable with the prior year period and higher than the $9 million recorded in the first quarter of this year.
Monster Worldwide's deferred revenue balance at June 30, 2010 was $280 million, compared with the $290 million reported for the second quarter of 2009 and $305 million in the first quarter of 2010. The sequential decline in deferred revenue was primarily associated with product mix, currency and normal seasonality.
Six Months Results
Monster Worldwide reported total revenue of $430 million for the first six months ended June 30, 2010 compared to $477 million in the same period last year, a 10% decrease, or 11% before the favorable impact of foreign exchange rates. Monster Careers revenue declined 11% to $366 million compared with $413 million in the 2009 period. Internet Advertising & Fees reported revenue of $64 million, essentially flat with the prior year period. The Company reported a loss of $27 million, or $0.23 per diluted share, compared to a loss of $12 million, or $0.10 per diluted share, in the prior year period.
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