) reported net income of $4.8 million or 4 cents per diluted share
in the second quarter of 2012, compared with a net income of $10.9
million or 9 cents per diluted share in the year-ago quarter and a
net income of $3.7 million or 3 cents per share in the previous
Excluding one-time charges, net income came in at 6 cents per
share in the quarter, in line with the Zacks Consensus
Monster reported revenues of $237 million in the second quarter
of 2012, down 3.7% sequentially and 12.1% year over year. Currency
translation had a negative impact of $9.2 million on revenue in the
Bookings (representing the dollar value of contractual orders
received, and considered a key indicator of future revenues)
decreased 4% year over year to $242 million. Bookings increased 14%
year over year due to continued strength in the company's
Government Solutions business, Staffing and Newspaper verticals.
The growth was offset by weakness in Europe and Asia, which were
negatively impacted by global economic challenges and currency
Careers revenue came in at $217 million, down 8.0% year over
year. North America generated revenues of $116 million, down 5%
year over year.
Careers-International revenue was down 11% year over year at
$101 million. Internet Advertising & Fees revenue of $20
million was down 41.2% year over year. Effective July 1, 2011,
Monster decided against engaging further in the arbitrage lead
generation business, a portion of the Internet Advertising &
Fees (IAF) business. This was due to the lack of profitability and
constraints in the business.
Excluding $11 million of arbitrage lead generation activity in
the first quarter of 2011, IAF revenue declined $3 million from the
In the first half of 2012, Monster generated $28.1 million of
cash from operations and incurred $33.3 million in capital
expenditures. Monster ended the quarter with cash and equivalents
of $157.5 million, down from $252.6 million at the end of the
As of March 31, 2012, deferred revenue was $372.3 million, down
from $408.3 million at the end of the previous quarter.
During the second quarter of 2012, Monster repurchased 3.0
million shares for $8.48 per share, totaling $26 million. The
company still has approximately $149 million remaining under the
company's $250 million share repurchase authorization.
Going forward, Monster expects bookings to be down by 10% to
flat year over year. Revenues are projected to decrease by
around 6% - 12% in the third quarter of 2013.
The company expects a continued weak business environment in
Europe. Monster expects earnings to come around 2 cents to 7 cents
per share. Excluding one-time items, earnings per share is
projected to come around 13 cents.
The company had earlier announced that it is exploring strategic
alternatives with respect to maximizing shareholder value, and
retained Stone Key Partners LLC and BofA Merrill Lynch as financial
advisors in connection with this review. Management stated that the
company will not provide additional details as of now.
We continue to maintain a long-term Neutral recommendation on
Monster. Our recommendation is supported by Zacks #3 Rank, which
translates into a short-term Hold rating.
MONSTER WWD INC (MWW): Free Stock Analysis
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