TMP Worldwide including career portal Monster, has announced its results for the second quarter ended June 30, 2002.
TMP Worldwide including career portal Monster, has announced its results for the second quarter ended June 30, 2002.
TMP reported adjusted diluted earnings per share (EPS)(2) of $0.14, compared to $0.36 for the second quarter of 2001. On a GAAP (Generally Accepted Accounting Principles) basis, TMP reported a net loss of $4.53 per diluted share, compared to net income of $0.17 per diluted share in the second quarter of 2001.
Items excluded from the GAAP net loss to arrive at adjusted net income and adjusted earnings per share for the second quarter of 2002 are:
An after-tax, non-cash charge of $428.4 million ($448.4 million pre-tax) for the impairment of goodwill, which was previously disclosed;
After-tax business reorganization and other special charges of $92.3 million ($114.4 million pre-tax); and
An after-tax merger and integration benefit of $0.8 million ($1.1 million pre-tax), compared to an after-tax charge of $16.3 million ($21.5 million pre-tax) in the same period last year.
Results for 2001 have been adjusted to exclude the effects of goodwill amortization.
We continue to be challenged by the ''''jobless recovery'''' and its impact on our businesses, said Andrew J. McKelvey, Chairman and CEO of TMP Worldwide. Specifically, in the second quarter, commissions and fees for Monster, Executive Search, and Monstermoving were below our expectations. However, commissions and fees for Advertising & Communications exceeded expectations and eResourcing was in-line with our expectations, primarily as a result of favorable exchange rates. While our near-term growth is largely dependent on an improvement in the job market, our ability to serve as the single source provider for our clients'''' human capital and directional marketing needs continues to be a key differentiator for TMP. Currently, 406 of the Fortune 500 companies use at least two of TMP''''s services and, of those, 274 use three or more services. Going forward, we will continue our focus to sell multiple services to new and existing clients in order to grow our top-line and further enhance our leadership position.
Jim Treacy, President and COO of TMP Worldwide, added, During this difficult time, our focus has squarely been on further reducing costs and inefficiencies throughout our global operations. Adjusted quarterly operating expenses are down $57 million or 17.5% on a year-over-year basis, demonstrating TMP''''s ability to execute on our profitability initiatives by bringing our costs in-line with our revenue expectations. These substantial cost savings will provide TMP with significant leverage when our markets improve.
SEC Certification
TMP''''s chief executive officer and chief financial officer have both stated that they intend to sign the financial certification, without qualification, by August 14, 2002, as required by the recent order of the Securities and Exchange Commission covering all public companies having revenues in excess of $1.2 billion for the fiscal year ended December 31, 2001.
Second Quarter Financial Review
TMP Worldwide will incur pre-tax business reorganization and other special charges of approximately $118.4 million, or $0.85 per diluted share on an after-tax basis for the full year 2002. In the second quarter of 2002, TMP recorded $114.4 million of this charge with the remaining $4.0 million to be incurred through the second half of the year. This charge exceeded the previously given guidance because the continued weakness in the global economy required greater cost reductions than originally anticipated, and one-time special charges were recorded for items not previously anticipated. For the three and six months ended June 30, 2002, the charge is primarily comprised of the following (dollar amounts in millions):
TMP Worldwide including career portal Monster, has announced its results for the second quarter.
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