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Third Quarter Results
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Revenue of $197 million
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Careers – North America Revenue Stabilizes at $110 million
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GAAP EPS from Continuing Operations of $0.08 per share
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Operating Expenses declined 9% year over year
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Consolidated EBITDA of $34 million
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Total Careers EBITDA margin of 18%
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Announces Sale of Minority Stake (49.9%) in South Korean Business for $90 Million, Establishing New Strategic Partnership in the Asia Pacific Region
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Expands Joint Venture with Alma Media Resulting in #1 Market Share Position in Eastern Europe and the Baltic Region
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Repurchased 8 Million Shares of Common Stock in the Third Quarter; Company Has Repurchased 11% of Outstanding Shares in 2013
Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the third quarter ended September 30, 2013.
“Our third quarter results were encouraging as we experienced stability in North America, protected profitability and continued executing on several important initiatives to enhance future growth,” said Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide. “The stabilization we experienced in North America in the second quarter continued and we are cautiously optimistic that this positive momentum will result in sequential revenue growth in North America in the fourth quarter of 2013.”
“We are pleased to announce the sale of a minority stake in our South Korean business for $90 million which demonstrates the underlying value of the Monster enterprise. We look forward to working with our partner, H&Q Korea, to grow this profitable business as well as to explore the potential expansion of this partnership throughout the Asia Pacific region. We are also excited to announce the expansion of our alliance with Alma Media in Eastern Europe and the Baltic region, which will enhance the profitability of these businesses and grow our market share position. Finally, consistent with our objective to enhance shareholder returns, we successfully repurchased $37 million worth of our shares in the quarter.”
Third Quarter 2013 Results
Revenue was $197 million, compared to third quarter 2012 revenue of $221 million. Careers – North America revenue of $110 million was flat on a sequential basis. Historical data on revenue for prior quarters is available in the Company’s supplemental financial information.
Consolidated operating expenses of $183 million decreased 9% compared to $201 million of Non-GAAP operating expenses in the third quarter 2012. Income from continuing operations for the third quarter of 2013 was $8.2 million, or $0.08 per share, compared to $41.1 million, or $0.37 per share in the third quarter 2012, which included a $31 million non-cash tax benefit. Non-GAAP net income from continuing operations in the third quarter of 2012 was $11.7 million, or $0.10 per share. EBITDA margin of 17% was led byCareers-North America with a 23% 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 $2.3 million, which included approximately $5 million of non-recurring cash outflows associated with restructuring activities. Deferred revenue was $316 million compared to $329 million as of June 30, 2013 and $352 million as of December 31, 2012. The Company ended the quarter with total available liquidity of $214 million.
Sale of Minority Stake in JobKorea
The Company has announced today that it has agreed to sell a 49.9% minority stake of JobKorea to H&Q Korea (“H&Q”) for a purchase price of $90 million. H&Q is a leading Asian private equity firm focused on companies with leading market positions, solid growth potential and profitability. Monster will retain management control in JobKorea and will leverage H&Q’s expertise and extensive Asia Pacific regional network to enhance and grow this profitable business. Monster will continue to consolidate the results of JobKorea.
Joint Venture with Alma Media
The Company has also announced an agreement to expand its current relationship with its joint venture partner in Finland. Alma Media is a leading media company focused on digital services and publishing in Finland, the Nordic countries, the Baltics and Central Europe. Monster and Alma Media will each contribute several additional entities and businesses into the existing joint venture and form a significantly larger joint venture where Monster will have an initial equity ownership of 15%, with the opportunity to increase ownership to 20%. Combining these assets will create an entity with the #1 market share position in the region and allow Monster to leverage another significant strategic partner for expanding and competing in new markets across the region.
Share Repurchase
During the third quarter 2013, Monster repurchased 8 million shares of its common stock at an average price of $4.64 per share, for a total of $37.2 million. At September 30, 2013, there was approximately $139.5 million remaining under the Company’s previously announced $200 million share repurchase program. Year to date, the Company has repurchased 12 million shares, or 11% of its total shares outstanding.
Nine Months Results
Monster Worldwide reported total revenue of $609 million for the first nine months ended September 30, 2013 compared to $679 million in the same period last year, a 10% decrease. Monster Careers revenue decreased 11% to $554 million compared with $621 million in the 2012 period. Internet Advertising & Fees reported revenue of $55 million compared to $58 million in the prior year period. The Company reported income from continuing operations of $23 million, or $0.21 per share, compared to $63 million, or $0.55per share, in the prior period.
Company Provides Q4 EPS Guidance
Beginning this quarter, any guidance provided will exclude non-cash, stock-based compensation expense in order to provide a better measurement of Monster’s operating performance, cash generation potential and value as a company.
Fourth quarter 2013 Non-GAAP EPS from continuing operations is expected to be in the range of $0.09 to $0.13, which excludes approximately $8 million of stock-based compensation expense.
Third quarter 2013 Non-GAAP EPS from continuing operations would have been $0.11 excluding approximately $5 million of stock-based compensation expense.
Historical data on Non-GAAP EPS excluding stock-based compensation expense for prior quarters is available in the Company’s supplemental financial information.
Conference Call and Webcast
Third quarter 2013 results will be discussed on Monster Worldwide’s quarterly conference call on November 7, 2013 at 8:30 AM ET. A live webcast of the conference call can be accessed online through the Investor Relations section of the Company’s website athttp://ir.monster.com. To join the conference call by telephone, please dial (888) 696-1396 or (706) 758-9636 and reference conference ID# 90871551.
A presentation of financial slides will be referenced during the conference call and will be viewable through the live webcast. A PDF of the financial presentation can also be accessed directly through the Company’s Investor Relations website athttp://ir.monster.com.
The Company has also made available certain supplemental financial information which can be accessed directly through the Company’s Investor Relations website at http://ir.monster.com.
For a replay of the conference call, please dial (855) 859-2056 or (404) 537-3406 and reference ID# 90871551. This number is valid until midnight on November 21, 2013.
To see the full release: http://ir.monster.com/phoenix.zhtml?c=110723&p=irol-newsArticle_Print&ID=1873663&highlight=
