NEW YORK--(BUSINESS WIRE)--Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the second quarter and six months ended June 30, 2010.

Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “Our second quarter operating performance and financial results show solid execution of Monster’s growth strategies. The improvement we experienced across all of our geographic regions continued in the second quarter with bookings of $208 million, a 19% increase, despite the market’s turbulence and uncertainty. The investments we’ve made to streamline operations and operate more efficiently enabled us to significantly increase EBITDA in the quarter.”

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.

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.

Guidance

The Company offered the following business outlook based on current available information and expectations as of July 29, 2010, exclusive of the pending Yahoo! HotJobs acquisition and any future acquisitions or dispositions.

($’s in millions, except per share amounts)

Special Note: The statements in this release that are not strictly historical, including, without limitation, statements regarding the Company's strategic direction, prospects and future results, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties and, therefore, actual results may differ materially from what is expressed or implied herein and no assurance can be given that the Company will achieve, among other things, its outlook with respect to bookings, revenue or earnings per share for the second fiscal quarter of 2010 or the full 2010 fiscal year. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated into this release by reference. Many of the factors that will determine the Company’s future results are beyond the ability of management to control or predict. Readers should not place undue reliance on the forward-looking statements in this release as they reflect management’s views only as of the date hereof. The Company undertakes no obligation to revise or update any of the forward-looking statements contained in this release or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Supplemental Financial Information

The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at:

http://about-monster.com/sites/default/files/q210financialsupplement.pdf or through the Company’s Investor Relations website at http://ir.monster.com.

Webcast Information

Second quarter 2010 results will be discussed on Monster Worldwide’s quarterly conference call taking place on July 29, 2010 at 5:00 PM ET. To join the conference call, please dial (877) 760-8985 at 4:50 PM ET and reference conference ID# 88211813. For those outside the United States, please dial (706) 758-9636 and reference the same conference ID#. The call will begin promptly at 5:00 PM ET. Individuals can also access Monster Worldwide’s quarterly conference call online through the Investor Relations section of the Company’s website at http://ir.monster.com. For a replay of the call, please dial (800) 642-1687 or outside the United States dial (706) 645-9291 and reference ID #88211813. This number is valid until midnight on August 5, 2010.

About Monster Worldwide

Monster Worldwide, Inc. (NYSE: MWW), parent company of Monster(R), the premier global online employment solution for more than a decade, strives to inspire people to improve their lives. With a local presence in key markets in North America, Europe, Asia and Latin America, Monster works for everyone by connecting employers with quality job seekers at all levels and by providing personalized career advice to consumers globally. Through online media sites and services, Monster delivers vast, highly targeted audiences to advertisers. Monster Worldwide is a member of the S&P 500 index. To learn more about Monster's industry-leading products and services, visit www.monster.com.

Notes Regarding the Use of Non-GAAP Financial Measures

The Company has provided certain non-GAAP financial information as additional information for its operating results. These measures are not in accordance with, or an alternative for, generally accepted accounting principles (“GAAP”) and may be different from non-GAAP measures reported by other companies. The Company believes that its presentation of non-GAAP measures provides useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations.

Non-GAAP revenue, operating expenses, operating income, operating margin, income from continuing operations and diluted earnings per share all exclude certain pro forma adjustments including: net costs associated with the Company’s historical stock option grant practices; the strategic restructuring actions initiated in the third quarter of 2007; severance charges related to the targeted global headcount reduction; the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR; realized gains on available for sale securities; and transaction costs associated with the proposed acquisition of Yahoo! HotJobs. The Company uses these non-GAAP measures for reviewing the ongoing results of the Company’s core business operations and in certain instances, for measuring performance under certain of the Company’s incentive compensation plans. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is defined as net income or loss before interest income or expense, income tax expense or benefit, depreciation and amortization and non-cash compensation expense. The Company considers EBITDA to be an important indicator of its operational strength which the Company believes is useful to management and investors in evaluating its operating performance. EBITDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

Operating income before depreciation and amortization (“OIBDA”) is defined as income from operations before depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash costs incurred in connection with the Company’s restructuring program. The Company considers OIBDA to be an important indicator of its operational strength. This measure eliminates the effects of depreciation, amortization of intangible assets, amortization of stock based compensation and non-cash restructuring costs from period to period, which the Company believes is useful to management and investors in evaluating its operating performance. OIBDA is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies.

Bookings represent the dollar value of contractual orders received in a quarter.

Free cash flow is defined as cash flow from operating activities less capital expenditures. Free cash flow is considered a liquidity measure and provides useful information about the Company's ability to generate cash after investments in property and equipment. Free cash flow reflected herein is a non-GAAP measure and may not be comparable to similarly titled measures reported by other companies. Free cash flow does not reflect the total change in the Company's cash position for the period and should not be considered a substitute for such a measure.

Net cash and securities is defined as cash and cash equivalents plus short-term and long-term marketable securities, less total debt. Total available liquidity is defined as cash and cash equivalents, plus short-term and long-term marketable securities plus unused borrowings under our credit facility. The Company considers net cash and securities and total available liquidity to be important measures of liquidity and indicators of its ability to meet its ongoing obligations. The Company also uses net cash and securities and total available liquidity, among other measures, in evaluating its choices for capital deployment. Net cash and securities and total available liquidity are presented herein as non-GAAP measures and may not be comparable to similarly titled measures used by other companies.