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Business Services Industry

Monster Worldwide Reports First Quarter 2008 Results

Business Wire, May 1, 2008

Total Revenue Increases 13% to $370 Million with Careers Revenue Up 16%

Careers International Revenue Grows 44%

Diluted Earnings Per Share From Continuing Operations at $0.18

Non-GAAP Diluted Earnings Per Share From Continuing Operations of $0.24

Restructuring Efficiencies Driving Improved Operational Performance, While Supporting Significant Investment Program

Cash Generated from Operating Activities Reaches $78 Million

NEW YORK -- Monster Worldwide, Inc. (NASDAQ:MNST) today reported financial results for the first quarter ended March 31, 2008.

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Total revenue grew 13% to $370 million in the first quarter of 2008 from $329 million in the comparable quarter of 2007. Excluding the impact of foreign exchange rates, consolidated revenue grew 8%.

Monster Careers revenue increased 16% to $337 million, compared with $290 million in last year's first quarter, led by International revenue growth of 44% to $153 million. North American Careers revenue was $184 million in the first quarter of 2008, flat with the prior year. Internet Advertising & Fees revenue was $34 million compared with $39 million in last year's first quarter.

Monster Worldwide's deferred revenue balance at March 31, 2008 grew 16% to $522 million over last year's first quarter balance of $450 million.

Income from continuing operations was $23 million, or $0.18 per diluted share, in the first quarter of 2008, compared to $40 million, or $0.30 per diluted share in the comparable 2007 period. Consolidated operating income was aided by a $3 million benefit from foreign exchange rates as compared to approximately $0.5 million from the first quarter of 2007. Included in income from continuing operations for the three months ended March 31, 2008 is $0.05 per diluted share from costs associated with the restructuring plan and the ongoing stock option investigation. These proforma 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 first quarter of 2008 was $29 million, or $0.24 per diluted share, compared to $46 million, or $0.35 per diluted share, in the prior year.

Sal Iannuzzi, Chairman, President and Chief Executive Officer of Monster Worldwide, said, "We are taking decisive action to redirect and integrate our sales resources to take advantage of the tremendous untapped opportunities to add customers in the large, medium and small company segments. This new "go to market" approach will enable us to better align our sales teams against the opportunity that offers the highest return on our investment. This sales force redirection will allow for more productive and deeper customer relationships while broadening our sales coverage and market penetration. We believe this action will help fuel us through the current economic downturn and position us well for an economic rebound. We are convinced that the current market environment presents a building opportunity that will yield solid benefits to our shareholders."

Operating expenses for the first quarter of 2008 include approximately $31 million of incremental marketing costs, reflecting the Company's strategic decision to reposition the Monster brand in the global marketplace through an aggressive, integrated marketing program. These expenses have been partially offset by savings and efficiencies realized from the Company's ongoing restructuring program.

Mr. Iannuzzi added, "During the first quarter, we made solid and steady progress in redefining many critical areas of our global business as the new leadership team continues the transformation which began last year. Monster is certainly not alone in facing the challenges of the slowdown in the US employment market due to weaker economic conditions. However, we firmly believe that the initiatives we have taken to integrate and align our sales resources, re-energize our brand, launch new products and restructure our operations, together with our geographic diversification, helped our financial performance during this period of weakness in the market."

At March 31, 2008, the Company had $499 million of cash, cash equivalents and securities held for sale compared with $578 million at December 31, 2007. Cash generated from operating activities was $78 million in the first quarter of 2008, essentially flat with the prior year period. Capital expenditures totaled $21 million in the first quarter of 2008. During the quarter, the Company repurchased 3.0 million shares of its common stock for an aggregate cost of $79 million. The Company currently has $174 million remaining under the current stock repurchase program. Since the third quarter of 2007, the Company has repurchased 10.3 million shares for an aggregate cost of approximately $330 million.

At March 31, 2008, the Company held auction rate securities with a fair value of approximately $103 million, the vast majority of which are guaranteed by the U.S. Department of Education and all of which have received the highest investment grade rating from rating agencies. The Company has recorded a temporary impairment on these securities of $1.7 million as a component of other comprehensive income. As of March 31, 2008, the Company has reclassified these auction rate securities as a long-term asset on its balance sheet.

Business Services Industry

Monster Worldwide Reports First Quarter 2008 Results

Business Wire, May 1, 2008

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