Monster Worldwide Reports First Quarter 2009 Results

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.

MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)

Three Months Ended March 31,
2009 2008

Revenue $ 254,403 $ 366,472

Salaries and related 122,385 140,448
Office and general 62,113 73,899
Marketing and promotion 73,691 111,854
Restructuring and other special charges 11,008 6,927
Total operating expenses 269,197 333,128

Operating (loss) income (14,794 ) 33,344

Interest and other, net 1,203 7,383

(Loss) income from continuing operations before income taxes and equity interests (13,591 ) 40,727

Income taxes (4,489 ) 15,143
Loss in equity interests, net (1,239 ) (1,822 )

(Loss) income from continuing operations (10,341 ) 23,762

Loss from discontinued operations, net of tax - (1,171 )

Net (loss) income $ (10,341 ) $ 22,591

Basic (loss) earnings per share:

(Loss) income from continuing operations $ (0.09 ) $ 0.19
Loss from discontinued operations, net of tax - (0.01 )
Basic (loss) earnings per share $ (0.09 ) $ 0.18

Diluted (loss) earnings per share:

(Loss) income from continuing operations $ (0.09 ) $ 0.19
Loss from discontinued operations, net of tax - (0.01 )
Diluted (loss) earnings per share $ (0.09 ) $ 0.18

Weighted average shares outstanding:

Basic 118,855 122,711

Diluted 118,855 123,332

Operating (loss) income before depreciation and amortization:

Operating (loss) income $ (14,794 ) $ 33,344
Depreciation and amortization of intangibles 16,320 12,189
Amortization of stock-based compensation 10,348 5,333
Restructuring non-cash expenses 3,668 2,086

Operating income before depreciation and amortization $ 15,542 $ 52,952

MONSTER WORLDWIDE, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

Three Months Ended March 31,
2009 2008
Cash flows provided by operating activities:
Net (loss) income $ (10,341 ) $ 22,591
Adjustments to reconcile net (loss) income to net cash provided by operating
activities:
Loss from discontinued operations, net of tax - 1,171
Depreciation and amortization of intangibles 16,320 12,189
Provision for doubtful accounts 4,072 3,564
Non-cash compensation 10,348 6,495
Deferred income taxes (2,488 ) (7,319 )
Non-cash restructuring write-offs and loss on disposal of assets 3,690 1,649
Loss in equity interests 1,239 1,822
Changes in assets and liabilities, net of business combinations:
Accounts receivable 72,347 37,848
Prepaid and other 3,246 1,025
Deferred revenue (63,383 ) (2,458 )
Accounts payable, accrued liabilities and other (21,237 ) (289 )
Net cash used for operating activities of discontinued operations (77 ) (560 )
Total adjustments 24,077 55,137
Net cash provided by operating activities 13,736 77,728

Cash flows (used for) provided by investing activities:
Capital expenditures (14,922 ) (20,559 )
Purchase of marketable securities (992 ) (149,249 )
Sales and maturities of marketable securities 1,425 414,453
Payments for acquisitions and intangible assets, net of cash acquired - (61,567 )
Cash funded to equity investee (1,428 ) (5,000 )
Net cash (used for) provided by investing activities (15,917 ) 178,078

Cash flows provided by (used for) financing activities:
Proceeds from borrowings on credit facilities short-term 199,203 -
Repurchase of common stock (1,907 ) (79,469 )
Payments on debt obligations (5 ) (80 )
Proceeds from exercise of employee stock options 9 418
Excess tax benefits from equity compensation plans 4 61
Net cash provided by (used for) financing activities 197,304 (79,070 )

Effects of exchange rates on cash (6,327 ) 10,256

Net increase in cash and cash equivalents 188,796 186,992
Cash and cash equivalents, beginning of period 222,260 129,744
Cash and cash equivalents, end of period $ 411,056 $ 316,736

Free cash flow:

Net cash provided by operating activities $ 13,736 $ 77,728
Less: Capital expenditures (14,922 ) (20,559 )
Free cash flow $ (1,186 ) $ 57,169

MONSTER WORLDWIDE, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)

Assets: March 31, 2009 December 31, 2008

Cash and cash equivalents $ 411,056 $ 222,260
Available-for-sale securities, current 992 1,425
Accounts receivable, net 294,449 376,720
Available-for-sale securities, non - current 89,196 90,347
Property and equipment, net 154,559 161,282
Goodwill and intangibles, net 936,503 946,881
Other assets 117,339 117,675
Total assets $ 2,004,094 $ 1,916,590

Liabilities and Stockholders' equity:

Accounts payable, accrued expenses and other $ 225,657 $ 254,425
Deferred revenue 344,905 414,312
Borrowings on credit facilities short-term 254,174 54,971
Non-current income taxes payable 123,385 119,951
Other liabilities 29,838 25,658
Total liabilities 977,959 869,317

Stockholders' equity 1,026,135 1,047,273

Total liabilities and stockholders' equity $ 2,004,094 $ 1,916,590

MONSTER WORLDWIDE, INC.
UNAUDITED OPERATING SEGMENT INFORMATION
(in thousands)

Three Months Ended March 31, 2009 Careers - Careers - Internet Corporate Total

North America
International
Advertising
Expenses

& Fees

Revenue $ 119,184 $ 103,665 $ 31,554 $ 254,403
Operating (loss) income 828 (671 ) 3,557 $ (18,508 ) (14,794 )
OIBDA 12,272 10,749 6,364 (13,843 ) 15,542

Operating margin 0.7 % -0.6 % 11.3 % -5.8 %
OIBDA margin 10.3 % 10.4 % 20.2 % 6.1 %

Three Months Ended March 31, 2008 Careers - Careers - Internet Corporate Total

North America
International
Advertising
Expenses

& Fees

Revenue $ 183,538 $ 153,272 $ 29,662 $ 366,472
Operating income 39,701 9,643 (1,431 ) $ (14,569 ) 33,344
OIBDA 47,602 16,662 792 (12,104 ) 52,952

Operating margin 21.6 % 6.3 % -4.8 % 9.1 %
OIBDA margin 25.9 % 10.9 % 2.7 % 14.4 %

MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP STATEMENTS OF OPERATIONS AND RECONCILIATIONS
(in thousands, except per share amounts)

Three Months Ended March 31, 2009 Three Months Ended March 31, 2008
As Reported Proforma Adjustments Non-GAAP As Reported Proforma Adjustments Non-GAAP

Revenue $ 254,403 $ 994 a $ 255,397 $ 366,472 $ - $ 366,472

Salaries and related 122,385 - 122,385 140,448 93 b 140,541
Office and general 62,113 (3,020 ) b 59,093 73,899 (3,527 ) b 70,372
Marketing and promotion 73,691 - 73,691 111,854 - 111,854
Restructuring and other special charges 11,008 (11,008 ) c - 6,927 (6,927 ) c -
Total operating expenses 269,197 (14,028 ) 255,169 333,128 (10,361 ) 322,767
Operating (loss) income (14,794 ) 15,022 228 33,344 10,361 43,705
Operating margin -5.8 % 0.1 % 9.1 % 11.9 %

Interest and other, net 1,203 - 1,203 7,383 - 7,383

(Loss) income from continuing operations before income taxes and (13,591 ) 15,022 1,431 40,727 10,361 51,088
equity interests

Income taxes (4,489 ) 4,962 d 473 15,143 3,852 d 18,995
Losses in equity interests, net (1,239 ) - (1,239 ) (1,822 ) - (1,822 )
(Loss) Income from continuing operations $ (10,341 ) $ 10,060 $ (281 ) $ 23,762 $ 6,509 $ 30,271

Diluted (loss) earnings per share from continuing operations * $ (0.09 ) $ 0.08 $ (0.00 ) $ 0.19 $ 0.05 $ 0.25

Weighted average shares outstanding:
Diluted 118,855 118,855 118,855 123,332 123,332 123,332

Note Regarding ProForma Adjustments:
The financial information included herein contains certain non-GAAP financial measures. This information is not intended to be used in place of the financial information prepared and presented in accordance with GAAP, nor is it intended to be considered in isolation. We believe that the above presentation of non-GAAP measures provide useful information to management and investors regarding certain core operating and business trends relating to our results of operations, exclusive of certain restructuring related and other special charges.

ProForma adjustments consist of the following:

a Deferred revenue fair value adjustment required under existing purchase accounting rules relating to our acquisition of China HR.

b Costs associated with the ongoing investigation into the Company`s historical stock option granting practices, net of reimbursements, and costs associated with the remediation of a security breach related to the Company's resume database in August 2007.

c Restructuring related charges pertaining to the strategic restructuring actions that the Company announced on July 30, 2007. These charges include costs related to the reduction in the Company`s workforce, fixed asset write-offs, costs relating to the consolidation of certain office facilities, contract termination costs, relocation costs and professional fees.

d Income tax adjustment is calculated using the effective tax rate of the reported period multiplied by the ProForma adjustment to income from continuing operations before income taxes and equity interests.

*Diluted earnings per share may not add in certain periods due to rounding. Diluted shares used for proforma presentation are the same as reported diluted shares.

MONSTER WORLDWIDE, INC.
UNAUDITED NON-GAAP OPERATING SEGMENT INFORMATION
(in thousands)

Three Months Ended March 31, 2009 Careers - Careers - Internet Corporate Total

North America
International
Advertising
Expenses

& Fees

Revenue - GAAP $ 119,184 $ 103,665 $ 31,554 $ 254,403
Proforma Adjustments - 994 - 994
Revenue - Non GAAP $ 119,184 $ 104,659 $ 31,554 $ 255,397

Operating (loss) income - GAAP $ 828 $ (671 ) $ 3,557 $ (18,508 ) $ (14,794 )
Proforma Adjustments 2,272 8,084 446 4,220 15,022
Operating (loss) income - Non GAAP $ 3,100 $ 7,413 $ 4,003 $ (14,288 ) $ 228

Operating margin - GAAP 0.7 % -0.6 % 11.3 % -5.8 %
Operating margin - Non GAAP 2.6 % 7.1 % 12.7 % 0.1 %

Three Months Ended March 31, 2008 Careers - Careers - Internet Corporate Total

North America
International
Advertising
Expenses

& Fees

Revenue $ 183,538 $ 153,272 $ 29,662 $ 366,472

Operating income (loss) - GAAP $ 39,701 $ 9,643 $ (1,431 ) $ (14,569 ) $ 33,344
Proforma Adjustments 3,254 3,302 822 2,983 10,361
Operating income (loss) - Non GAAP $ 42,955 $ 12,945 $ (609 ) $ (11,586 ) $ 43,705

Operating margin - GAAP 21.6 % 6.3 % -4.8 % 9.1 %
Operating margin - Non GAAP 23.4 % 8.4 % -2.1 % 11.9 %

Monster Worldwide, Inc.
Investors:
Robert Jones, 212-351-7032
Robert.Jones@monsterworldwide.com
or
Media:
Steve Sylven, 978-461-8503
Steve.Sylven@monster.com

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