NEW YORK--(BUSINESS WIRE)--Monster Worldwide, Inc. (NYSE:MWW) today reported financial results for the first quarter ended March 31, 2009.

Total Revenue of $254 Million Consistent with Company’s Expectation

Company Maintains Positive Operating Cash Flow of $14 Million

Net Cash and Securities of $247 Million

Loss Per Share from Continuing Operations of $0.09; Non-GAAP Diluted Earnings Per Share from Continuing Operations at Break-Even

Non-GAAP Operating Expenses Decline 21% Over Prior Year

Company Experiences Continuing Progress and Momentum on Strong User Engagement Metrics Supported by Ongoing Investments

Sal Iannuzzi, chairman, president and chief executive officer of Monster, said, “As anticipated, the challenging global economy continued to severely impact customer demand during the first quarter of 2009. We were able to leverage the power of our brand to drive awareness and higher levels of user engagement following our new product launch in early January. Our strict and disciplined approach to cost containment enabled us to preserve our liquidity position, maintain necessary investments and report a break-even quarter.”

Total revenue declined 31% to $254 million, compared with $366 million in the comparable quarter of 2008. Monster generated 43% of its revenue outside the United States and total revenue was negatively impacted by $27 million from unfavorable foreign exchange rates.

Careers non-GAAP revenue decreased 34% to $224 million as North America generated revenue of $119 million, compared with $184 million in the prior year period. International non-GAAP revenue was $105 million, a 32% decline over the prior year period, or a 22% decline excluding currency and the contribution from ChinaHR. Internet Advertising & Fees revenue increased 6% to $32 million over last year’s first quarter.

Consolidated operating expenses were $269 million, and the loss from continuing operations was $10 million, or $0.09 per share, compared to income from continuing operations of $24 million, or $0.19 per diluted share, in the comparable 2008 period. Foreign exchange rates negatively impacted consolidated pre-tax operating income by approximately $2 million, or $0.01 per diluted share. Operating expenses included approximately $27 million of incremental marketing costs that will not recur in any of the next three quarters of 2009.

Income from continuing operations for the three months ended March 31, 2009 includes the following pre-tax pro forma adjustments: $11.0 million of expenses associated with the Company’s restructuring plan; $3.0 million of legal fees, primarily related to the Company’s obligation to indemnify former officers for their defense in connection with the ongoing litigation related to historical stock option grant practices; and a $1.0 million reduction to total revenue due to the purchase accounting adjustment for ChinaHR. As a result, the Company recorded total pre-tax pro forma adjustments of $15.0 million. These 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.

On a non-GAAP basis, the Company generated revenue of $255 million and $255 million of operating expenses. In last year’s first quarter, revenue was $366 million and operating expenses were $323 million. Income from continuing operations was essentially break-even, compared to $30 million, or $0.25 per diluted share, in the prior year.

Monster ended the first quarter of 2009 with total available liquidity of $501 million and the Company had net cash and marketable securities of $247 million, compared with $259 million at the end of the 2008 fourth quarter.

During the quarter, the Company borrowed $199 million under its revolving credit facilities, and currently has $254 million classified as total debt on the consolidated balance sheet. Cash flow from operating activities was $14 million, compared to $78 million generated in the prior year period.

Capital expenditures were $15 million, a lower rate than previous quarters, representing the gradual decrease in certain investment project spending. Approximately $89 million of auction rate securities are classified as a long-term asset on the consolidated balance sheet, and are included in the cash and securities balance as of March 31, 2009.

Monster’s deferred revenue balance at March 31, 2009 was $345 million, reflecting global economic weakness, compared with last year’s first quarter balance of $522 million, and $414 million reported for the fourth quarter of 2008.

Mr. Iannuzzi concluded, “While the near-term environment continues to be challenging, we believe that Monster is uniquely qualified to serve its customers on a global basis and achieve market share gains. Our global industry leading position, powerful brand and deep financial resources are unparalleled in the online recruitment industry and provide the foundation for long-term future growth when the economy rebounds.”

Supplemental Financial Information

The Company has made available certain supplemental financial information, in a separate document that can be accessed directly at http://corporate.monster.com/Q109.pdf or through the Company’s Investor Relations website at http://ir.monster.com.

Conference Call Information

First quarter 2009 results will be discussed on Monster Worldwide’s quarterly conference call taking place on April 30, 2009 at 5:00 PM EDT. To join the conference call, please dial (888) 551-5973 at 4:50 PM EST and reference conference ID# 95433955. For those outside the United States, please dial (706) 643-3467 and reference the same conference ID#. The call will begin promptly at 5:00 PM EDT. 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 #95433955. This number is valid until midnight on May 7, 2009.

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: costs associated with the Company’s historical stock option grant practices, related litigation and potential fines or settlements; severance costs for former executive officers incurred in the second quarter of 2007; costs related to the measures taken by the Company in response to a security breach in August 2007; the strategic restructuring actions initiated in the third quarter of 2007; and the fair value adjustment to deferred revenue in connection with the acquisition of ChinaHR. 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.

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.

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. The Company considers net cash and securities to be an important measure of liquidity and an indicator of its ability to meet its ongoing obligations. The Company also uses net cash and securities, among other measures, in evaluating its choices for capital deployment. Net cash and securities presented herein is a non-GAAP measure and may not be comparable to similarly titled measures used by other companies.

Special Note: Except for historical information contained herein, the statements made in this release, 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, including statements regarding the Company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions or dispositions, competition, ongoing costs associated with the Company’s historical stock option grant practices, costs associated with the restructuring and security breach, 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 in this release by reference.