Monster Worldwide Reports Third Quarter 2012 Results and Announces Corporate Restructuring
- Third Quarter Results
- Revenue from Continuing Operations of $222 million
- GAAP EPS from Continuing Operations of $0.35, includes $0.28 non-recurring tax benefit
- Non-GAAP EPS from Continuing Operations of $0.09
- Announces Corporate Restructuring
- Concentrates resources on core business in North America and key European & Asian markets supported by increased marketing and sales
- Pursues sale of ChinaHR and evaluates options in developing markets
- Combined actions expected to reduce Operating Expense by approximately $130 million on an annualized basis
- Review of Strategic Alternatives Ongoing
NEW YORK--(BUSINESS WIRE)--Nov. 8, 2012-- Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the third quarter ended September 30, 2012. The Company also announced that it will implement a corporate restructuring to focus on its core business and reduce its cost structure in order to improve profitability and cash flow.
Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, "During the third quarter, our bookings in North America, excluding the Government vertical, were up slightly, while bookings in Europe and Asia were negatively impacted by the challenging economic environment. We are implementing a plan to concentrate our resources on our largest markets where we generate the lion's share of our revenue and profit and where we are experiencing increased customer traction with our advanced technologies. We believe this plan provides Monster the resources to grow our leading businesses in North America and Europe."
"While our strategic alternatives review is ongoing and we remain committed to maximizing value for shareholders, today we are announcing a series of actions designed to increase the Company's profitability and strengthen its core profitable markets," Iannuzzi concluded.
Corporate Restructuring
The restructuring actions announced today include:
- Pursuing a sale of ChinaHR and classifying the asset as held for sale in third quarter financial results. As a result, ChinaHR is excluded from third quarter continuing operations and prior results have been restated to reflect this change. The Company reported a non-cash asset impairment charge and deferred tax asset write-off of $225 million related to ChinaHR in the GAAP operating results.
- Evaluating all options for developing markets and substantially curtailing the losses incurred in those markets.
- Continuing and accelerating the redeployment of expenses into marketing and sales in Monster's core markets, while reducing the run rate of operating expenses.
This series of actions described above is expected to reduce Monster Worldwide's operating expense by approximately $130 million on an annualized basis. Cumulative pre-tax charges within the range of $50 million to $60 million will be recorded, of which the majority will be cash and recorded in the fourth quarter 2012. The Company anticipates the majority of these actions will occur by year end.
