TMP Worldwide Announces Third Quarter 2001 Results.
Business Editors
NEW YORK--(BUSINESS WIRE)--Nov. 5, 2001--TMP Worldwide Inc.(TMPW)
-- Third Quarter Diluted Adjusted EPS of $0.35 Up 35% --
-- Reiterates Its Earlier EPS Estimates for 2001 and 2002 --
TMP Worldwide Inc. (NASDAQ: TMPW), the world's leading supplier of
human capital solutions, including the pre-eminent Internet career
portal Monster.com(R) and the world's largest Yellow Pages advertising
agency, today reported diluted adjusted third quarter 2001 earnings
per share of $0.35, for an increase of 35% over the prior year period.
The Company attributed its leading market position, recurring revenue
stream and ongoing profitability improvements to the increase in
earnings.
"We were pleased that we were still able to grow our business and
report increased earnings compared to last year, although third
quarter results were lower than we wanted," said Andrew J. McKelvey,
Chairman and CEO of TMP Worldwide. "As we previously indicated, our
ability to generate top-line growth in the near-term has been
adversely impacted by the events of September 11th and the sudden
economic slowdown that followed. Consequently, we continue to manage
our business prudently to ensure that our costs are aligned with the
lower revenue expectations resulting from this slowdown. Nonetheless,
we remain confident about the long-term prospects of TMP Worldwide.
Our confidence is bolstered by our strong brand recognition, our
diversified portfolio of products and services, our unique ability to
cross-sell these offerings, and our strong balance sheet."
Third Quarter Financial Review
Total commissions and fees for TMP Worldwide declined by 5% to
$361.2 million for the quarter ended September 30, 2001, down from
$381.1 million in the third quarter of 2000. However, adjusted net
income for the third quarter of 2001 was $39.6 million, up 36% from
$29.1 million for the prior year period.
The decrease in total Company commissions and fees reflects
declines in Advertising & Communications, eResourcing, Executive
Search and Directional Marketing, substantially offset by the
continued growth of Monster.com, the flagship product of TMP's
Interactive division, and an increase at Monstermoving.com. Total
Interactive commissions and fees for TMP were $174.3 million for the
third quarter, a 38% increase from the $126.0 million reported for the
prior year period, as restated for pooling of interests transactions.
Quarter versus quarter comparative results for TMP Worldwide are
as follows (all numbers in thousands, except per share amounts):
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----------------------------------------------------------------------
Operating Highlights 3Q'01 3Q'00(1) % Change
----------------------------------------------------------------------
Total Commissions and Fees $361,173 $381,114 -5%
Adjusted Operating Income (2) $60,437 $46,269 +31%
Adjusted EBITDA (2) $80,990 $60,590 +34%
Adjusted Net Income (3) $39,583 $29,117 +36%
Diluted Adjusted EPS (4) $0.35 $0.26 +35%
Diluted Weighted Avg. Shares 113,665 112,533 +1%
----------------------------------------------------------------------
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The adjusted operating income, EBITDA, net income and diluted EPS
amounts discussed herein reflect adjustments to exclude merger and
integration costs incurred in connection with companies acquired using
the pooling of interests method of accounting and the tax benefits
thereon (please see the Endnotes). Merger and integration costs for
the quarter ended September 30, 2001 were $20.2 million versus $14.8
million for the third quarter of 2000. Such costs include transaction
costs for the mergers completed in the respective year-to-date
periods, amortization of employee stay bonuses, separation pay, and
office and management integration costs.
A higher operating margin in Interactive operations contributed to
a 31% increase in adjusted operating income to $60.4 million and a 34%
increase in adjusted EBITDA to $81.0 million. The adjusted operating
profit margin increased to 16.7% for the third quarter, compared to
12.1% for the same period last year.
Quarter versus quarter comparative results for TMP Worldwide
commissions and fees by operating division, including their
Interactive components, are as follows (in thousands):
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----------------------------------------------------------------------
Commissions & Fees 3Q'01 3Q'00 % Change
----------------------------------------------------------------------
Traditional Interactive Total Total on Total
----------------------------------------------------------------------
Monster.com $ - $144,800 $144,800 $105,535 +37%
Monstermoving.com - 4,039 4,039 3,106 +30%
Advertising &
Communications 48,611 2,512 51,123 65,947 -22%
eResourcing 86,749 21,104 107,853 127,427 -15%
Executive Search 22,956 5 22,961 47,913 -52%
Directional Marketing 28,538 1,859 30,397 31,186 -3%
----------------------------------------------------------------------
Total $186,854 $174,319 $361,173 $381,114 -5%
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Jim Treacy, President and COO of TMP Worldwide, said, "While we
are clearly facing near-term challenges in our sector, our
diversification of products, markets and customers continues to
provide us with the opportunity to grow our earnings and increase our
market share. Our Interactive services, in particular, continue to
gain share versus traditional recruitment and advertising services, as
evidenced by our strong gains in Interactive commissions and fees in
Monster.com and eResourcing. Additionally, with six market-leading
business lines serving their own distinct client bases, we are
aggressively pursuing opportunities to cross-sell our services to
those sectors and markets where the strongest demand exists today."
Monster.com's continued growth resulted in commissions and fees of
$144.8 million for the third quarter of 2001, a 37% increase over the
$105.5 million reported in the third quarter of 2000. In addition, for
the third quarter of 2001, Monster.com's adjusted operating profit was
$51.4 million, up from $20.5 million in the third quarter of 2000,
resulting in an adjusted operating margin of 35.5%. Monstermoving.com
also reported solid growth, as its commissions and fees increased 30%
to $4.0 million from $3.1 million for the same period last year. The
addition of new clients, increased website traffic and successful
cross-selling to the Directional Marketing client base accounted for
most of this growth.
Advertising & Communications' total commissions and fees,
including its Interactive business, were $51.1 million for the third
quarter of 2001, a 22% decrease from the $65.9 million reported for
the third quarter of 2000. Commissions and fees in Advertising &
Communications' traditional operations were $48.6 million for the
third quarter of 2001, down from $56.8 million in the third quarter of
2000, a decline of 14%, reflecting the continuing effects of the
difficult economic environment. However, due to this division's
ongoing focus on improving its cost structure, it continued to
generate an adjusted operating profit in the third quarter despite the
reduced level of commissions and fees. Advertising & Communications'
strategy to reduce its dependency on newspaper advertising commissions
as the primary source of revenue continues to be successful, as
demonstrated by its relative out performance of The Conference Board's
Help Wanted Index for the third quarter of 2001, which declined 34%.
eResourcing's total commissions and fees, including its
Interactive business, were $107.9 million, down 15% from $127.4
million for the same period last year. eResourcing's traditional
business generated $86.7 million in commissions and fees during the
third quarter, compared to $121.1 million reported in the third
quarter of last year, a 28 % decrease, as the further slowdown in the
economy caused a significant decline in permanent placement revenues
in the U.S. However, eResourcing's Interactive contribution continued
to grow significantly, generating commissions and fees of $21.1
million, up 233% over the same period last year. This increase
reflects the ongoing synergies between eResourcing and Monster.com's
resume database and proprietary Web mining tools.
Executive Search reported commissions and fees of $23.0 million in
the third quarter of 2001, down 52% from the third quarter of 2000,
also reflecting the further slowdown in the economy and retained
searches, particularly following the events of September 11th.
Although demand for executive level searches has declined, TMP's
cross-selling initiatives and full-service offering enables Executive
Search consultants to provide their clients with recruiting solutions
that best meet their shifting human capital needs.
Directional Marketing's commissions and fees, including its
Interactive business, were $30.4 million for the third quarter of
2001, down slightly from the $31.2 million reported in the third
quarter of 2000. However, the continued focus on increasing
productivity and client retention enabled the division to again
improve its profitability during the quarter.
Consolidated commissions and fees as a percent of related billings
for the quarter ended September 30, 2001 were 56.3% compared to 52.3%
for the prior year period. This increase reflects the growth of the
Company's Interactive businesses, where TMP retains a greater portion
of the amount billed to the client.
Monster.com Continues to Gain Share of the Online Recruitment
Market
Monster.com continued to report record traffic figures for the
third quarter, despite a short-term drop in site traffic following
September 11th. In September 2001, according to independent research
conducted by Media Metrix, Monster received 7.2 million unique
visitors, up 64% from the 4.4 million visitors reported in September
2000. Monster.com's "power ranking5" of 266.3 and its 62.4% of "career
eyeball minutes6" also confirm its leading position in the online
recruitment market. Furthermore, the economic slowdown has spurred
additional growth in Monster.com's consumer base, as indicated by the
increase in job seeker members to more than 19 million, and the
increase in total number of resumes to more than 13 million.
Monster.com continues to revolutionize and lead the industry's secular
shift towards full service, online recruitment solutions by
introducing cost-effective products and services that connect
employer's job opportunities with millions of job seekers.
Jeff Taylor, Global Director Interactive, stated, "Monster.com's
ability to deliver strong results in the face of adversity is
indicative of the strength of our management team and our leadership
position as the most comprehensive provider of online recruitment
solutions. With a database now of more than 13 million resumes, our
value to clients has been increasing dramatically over the last year
as we clearly now provide companies with the world's largest pool of
available labor. Demographic labor shortages continue to exist today
and we believe that these shortages will become even more acute when
the economy begins to recover. At that time, employers are going to
need to hire people even more quickly and cost efficiently than before
in order to maintain their competitive positions and drive growth.
Monster.com has become the industry standard for a solution to meet
these needs, which we believe will drive market share gains when the
demand shift occurs."
TMP Maintains Strong Balance Sheet
As of September 30, 2001, TMP had $317.6 million in cash and cash
equivalents on the balance sheet compared to $540.8 million as of June
30, 2001. The decrease in cash is primarily a result of the Company's
acquisition activity and capital investments in the business during
the quarter. Cash paid for acquisitions, net of cash received from
acquired companies, was approximately $230 million for the quarter
ended September 30, 2001, including $109 million for the acquisition
of Jobline International AB, one of Europe's leading online
professional recruitment companies.
Mr. Treacy stated, "We came into the economic downturn with a
strong balance sheet, and we will continue to manage our operations
and focus on working capital to enhance our cash position and preserve
our financial flexibility. Given the short-term economic uncertainty
ahead, we have suspended virtually all future acquisition activity,
with the exception of potential acquisitions in our Interactive
division. This will allow us to concentrate our efforts on the
efficient integration of all our businesses, including streamlining of
management, systems, business processes and office locations. At the
same time, we will continue to invest in internal growth initiatives
that will increase our competitive standing, and position TMP as the
clear leader over the long-term."
Strategic Acquisitions
In addition to Jobline International AB, TMP Worldwide completed
several other acquisitions in the third quarter of 2001. TMP's
acquisitions are designed to enhance its product and market reach and
expand its global presence.
Monster.com
-- In July, TMP acquired IT Appointments Limited, a privately
held leading career site for IT professionals in Ireland. IT
Appointments provides a focused website dedicated to
connecting IT job seekers with top companies throughout the
growing high-tech community in Ireland and the U.K.
Advertising & Communications
During the quarter, the Advertising & Communications division
acquired five companies, expanding its reach in Europe and the United
States. Of particular note are:
-- In July, TMP acquired Daric Limited, located in the U.K.,
which serves to strengthen the division's position with local
and national government accounts, where recruitment is
expected to remain relatively stable.
-- In September, TMP acquired US Motivation, Inc., a company that
focuses on employee retention and motivation primarily for
sales professionals through the design, implementation and
operation of sales incentive plans and promotional services to
corporate clients throughout the United States.
eResourcing
In the third quarter, the eResourcing division completed six
acquisitions; three firms in Europe, two in Australia, and one in
North America. Of particular note are:
-- In July, TMP acquired Sale Search Rekrytering & Urval:
Stockholm AB, located in Sweden, which provides permanent
placement services primarily for sales and marketing
professionals across a wide range of industries, including
media, IT and telecommunications, and manufacturing.
-- In August, TMP acquired Kudos Recruitment Limited, an IT
contracting and permanent staffing firm in the United Kingdom,
which serves primarily the IT and telecommunications industry
in the U.K., Ireland and most of Continental Europe.
-- In October, TMP completed the acquisition of Ernst & Young
Human Resources Services NV, also known as De Witte & Morel,
the market leader in human capital management in Belgium. One
of the largest recruitment companies in Continental Europe, De
Witte expands the reach of TMP's eResourcing division in
selection, mid-market search and candidate assessment, as well
as accounting, finance and human resource consulting.
Directional Marketing
-- In August, TMP acquired The O'Connor Agency, which complements
the Company's existing position as the world's largest Yellow
Page advertising agency and provides strong revenues and cash
flows for TMP's North American business.
-- Also in August, TMP acquired Hunt Marketing, Inc., expanding
the Company's telemarketing fulfillment business to the
Midwest region of the United States.
Other Highlights
-- In September, Monster.com announced the launch of
MonsterLearning (www.monsterlearning.com), a unique online
resource for consumers managing learning as it relates to
advancing their careers. Monster debuted with
MonsterLearning Search (ML Search), the first of several
products and services designed to help track, plan, manage
and assess career and professional growth. Leveraging
Monster.com's powerful search engine technology, ML Search
offers learning seekers the opportunity to explore and
research all their options for career-related learning.
The one-stop search engine provides free access to online
and classroom courses, test preparation, degree programs,
certifications and other instructional materials such as
books and videos, anytime - 24 hours a day, seven days a
week.
-- Also in September, Monstermoving.com announced the launch
of Monstermoving Corporate Relocation Solutions, which
provides in-depth relocation information and support tools
to companies that relocate employees internationally and
domestically.
Nine Month Results
TMP reported total commissions and fees of $1,122.0 million for
the nine months ended September 30, 2001, compared to $1,029.4 million
for the year-earlier period, an increase of 9%. Total Interactive
commissions and fees were $507.6 million, up $199.8 million or 65%
versus $307.8 million for the same period last year.
Monster.com's commissions and fees increased 63% to $420.2 million
for the nine months ended September 30, 2001, from $258.6 million for
the nine months ended September 30, 2000, primarily reflecting
increased market share gains, and the addition of new clients,
products and services.
Monstermoving.com's commissions and fees increased 55% to $11.2
million for the nine months ended September 30, 2001, from $7.3
million for the nine months ended September 30, 2000, reflecting the
addition of new clients, and successful cross-selling efforts with
Directional Marketing.
Advertising & Communications' total commissions and fees decreased
16% to $160.2 million for the nine months ended September 30, 2001,
compared to $190.6 million for the prior year period, reflecting the
general decline in newspaper classified advertising during the U.S.
economic slowdown, partially offset by growth in creative and
value-added services, and the sale of innovative employee
communication products and services to corporate human resource
departments.
eResourcing's total commissions and fees were $363.1 million for
the nine months ended September 30, 2001, representing an increase of
2% compared to $355.1 million for the prior year period. This increase
primarily reflects the impact of acquisition activity and continued
demand for temporary contract professionals, primarily for information
technology and mid-level management, but has been offset by a
significant decline in permanent placement fees due to the weak U.S.
economic environment.
Executive Search's total commissions and fees were $87.0 million
for the nine months ended September 30, 2001, a decrease of 36%
compared to $135.3 million for the prior year, reflecting the
continued impact that the slowdown in the U.S. economy is having on
executive level search bookings, particularly in the U.S. financial
services and information technology sectors.
Directional Marketing's total commissions and fees were $80.1
million for the nine months ended September 30, 2001, a decrease of 3%
versus $82.6 million for the prior year period, reflecting lower
commissions paid by Yellow Page publishers and higher discounts to
major clients, partially offset by the effects of rate increases and
the addition of new clients.
Excluding merger and integration costs of $61.9 million for the
nine months ended September 30, 2001 and $37.1 million for the nine
months ended September 30, 2000, which were incurred in connection
with companies acquired using the pooling of interests method of
accounting, the Company reported adjusted operating income of $144.3
million for the nine months ended September 30, 2001, up 38% from
$104.5 million for the prior year period. This increase primarily
reflects the growing profitability of Monster.com and the effects of
strategic cost reduction initiatives across the entire Company.
Consequently, the adjusted operating profit margin for the nine months
ended September 30, 2001 was 12.9% compared to 10.1% for the period
ended September 30, 2000.
Adjusted EBITDA for the nine months ended September 30, 2001 was
$200.2 million versus $145.6 million for the prior year, representing
an increase of 38%. Adjusted net income increased 39% to $96.0 million
for the nine months ended September 30, 2001, compared to $69.2
million for the prior year period. Diluted adjusted earnings per share
were $0.85 for the nine months ended September 2001 versus $0.62 for
the prior year, representing an increase of 37%.
Business Outlook - TMP Reiterates 2001 and 2002 Estimates
The following estimates include the anticipated impact of mergers,
acquisitions and other business combinations completed before November
5, 2001, and exclude merger and integration expenses incurred in
connection with companies acquired using the pooling of interests
method of accounting.
Fourth Quarter and Total Year 2001
Bart Catalane, Chief Financial Officer of TMP Worldwide, said,
"Given the prevailing difficult economic environment, we remain
cautious in our business outlook for the near-term. We continue to
estimate adjusted diluted earnings per share of $0.24 to $0.26 for the
fourth quarter of 2001. As a result, for the full year 2001, the
Company estimates adjusted diluted earnings per share in the range of
$1.09 to $1.11, which represents an increase of 17% to 19% over
adjusted diluted earnings of $0.93 per share in 2000. Interactive
commissions and fees for 2001 are estimated to be in the range of $655
million to $675 million, which represents a 44% to 49% increase above
prior year's Interactive commissions and fees of $453 million. The
anticipated gains in Interactive are expected to be offset by further
declines in most of the Company's traditional lines of business,
specifically, Executive Search, eResourcing and Advertising &
Communications. As a result, total Company commissions and fees for
2001 are estimated to be in the range of $1.45 billion to $1.47
billion, which represents an increase of 3% to 4% above prior year's
commissions and fees of $1.40 billion."
Total operating expenses for 2001 are still expected to be between
86% and 88% of the revised estimate for total Company commissions and
fees. These operating expenses include approximately $26 million of
amortization of intangibles and $170 million to $190 million of
marketing and promotion expenses, but exclude merger and integration
expenses.
Due to the significant decline in market interest rates and the
Company's use of approximately $230 million in cash to complete third
quarter acquisitions, the Company still estimates net interest expense
to be in the range of zero to $1.0 million for the fourth quarter of
2001. The Company believes that its continuing focus on cost
reductions and improving working capital, particularly in the area of
accounts receivable, should result in substantial positive cash flow.
2002
Mr. Catalane continued, "Although our short-term outlook is
guarded, we continue to believe that TMP is positioned for growth in
2002. Based on our assumption that there will be a modest economic
recovery in the second half of 2002, combined with several internal
strategic and operating initiatives, we believe TMP can maintain its
top-line and drive meaningful bottom-line growth in 2002.
Consequently, we continue to estimate that TMP will generate total
Company commissions and fees in the range of $1.47 billion to $1.49
billion for the full year 2002, which is flat to 3% higher than the
current estimate for total 2001. We also estimate that adjusted
diluted earnings per share for the full year 2002 will be in the range
of $1.55 and $1.65. This estimate includes our anticipated January 1,
2002 adoption of FASB 142, `Accounting for Goodwill and Other
Intangible Assets,' which requires the elimination of goodwill
amortization and is estimated to benefit the company by approximately
$0.10 to $0.12 per diluted share. Reflecting this elimination of
goodwill, 2001 would result in earnings per share expectations of
$1.19 to $1.21, rather than $1.09 to $1.11. Therefore, on a comparable
basis, we estimate that earnings will grow from a range of $1.19 to
$1.21 in 2001 to a range of $1.55 to $1.65 in 2002, an increase of 28%
to 39%. Lastly, reflecting the seasonality of our business and the
modest recovery expected in the second half of 2002, the estimated
quarterly breakdown is: $0.23 to $0.25 for the quarter ended March 31,
2002; $0.31 to $0.33 for the quarter ended June 30, 2002; $0.49 to
$0.52 for the quarter ended September 30, 2002; and $0.52 to $0.55 for
the quarter ended December 31, 2002."
Added Mr. Treacy, "We continue to believe that our broad
geographic and customer reach, extensive product offerings and
cross-selling abilities, will enable us to grow our market share and
achieve our top-line objectives. In addition, ongoing cost reduction
programs continue to drive profitability at TMP Worldwide. We reduced
expenses on an annual basis by $50 million in the first half of this
year and we have completed our plans to reduce expenses by an
additional $60 million in the fourth quarter 2001 ensuring that our
costs are aligned with our lower revenue expectations for next year.
Lastly, in 2002, we also expect to benefit from the full-year impact
of our 2001 acquisitions, as well as the impact of bringing Monster
Europe to profitability and Monstermoving.com to breakeven earlier
than previously expected."
About TMP Worldwide
Founded in 1967, TMP Worldwide Inc., with more than 10,500
employees in 33 countries, is the online recruitment leader, the
world's largest Recruitment Advertising agency network, and one of the
world's largest Executive Search & Executive Selection agencies. TMP
Worldwide, headquartered in New York, is also the world's largest
Yellow Pages advertising agency and a provider of direct marketing
services. The Company's clients include more than 90 of the Fortune
100 and more than 480 of the Fortune 500 companies. In June 2001, TMP
Worldwide was added to the S&P 500 Index. More information about TMP
Worldwide is available at www.tmp.com.
Monster.com, headquartered in Maynard, Mass., is the leading
global careers website, recording over 24.9 million unique visits
during the month of September 2001 according to independent research
conducted by I/PRO. Monster.com connects the most progressive
companies with the most qualified career-minded individuals, offering
innovative technology and superior services that give them more
control over the recruiting process. The Monster.com global network
consists of local content and language sites in the United States,
United Kingdom, Australia, Canada, the Netherlands, Belgium, New
Zealand, Singapore, Hong Kong, France, Germany, Ireland, Spain,
Luxembourg, India, Italy, Sweden, Norway, Denmark, Switzerland, and
Finland. Monster.com is the official online career management services
sponsor of the 2002 Olympic Winter Games and 2002 and 2004 U.S.
Olympic Teams. More information about Monster.com is available at
www.monster.com or by calling 1-800-MONSTER.
Condensed consolidated statements of operations for the three
months and nine months ended September 30, 2001 and 2000 and condensed
consolidated balance sheets for September 30, 2001, June 30, 2001 and
December 31, 2000 for TMP Worldwide Inc. and subsidiaries follow. For
an investment kit, please contact Dan Bustillos at (212) 351-7084 or
visit www.tmp.com.
Third quarter 2001 results will be discussed on TMP Worldwide's
quarterly conference call taking place on November 6, 2001. To join
the conference call, please dial in on 1-888-391-0105 at 8:20 AM
E.S.T. For those outside the United States, please call in on
1-212-896-6078. The call will begin promptly at 8:30 AM E.S.T.
Individuals can also access TMP Worldwide's quarterly conference call
through Yahoo! Finance at www.yahoo.com and the investor information
section of the Company's website at www.tmp.com. Interactive Metrics
for TMP Worldwide and Monster.com are available at www.monster.com or
www.tmp.com.
Endnotes
1 Prior periods' results have been retroactively restated to
reflect the effects of acquisitions accounted for as pooling
of interests that were completed prior to June 30, 2001.
2 Operating profit and EBITDA have been adjusted to exclude the
effects of merger and integration costs of $20.2 million and
$14.8 million for the quarters ended September 30, 2001 and
2000, respectively.
3 Net income has been adjusted to exclude the effects of merger
and integration costs incurred, net of the tax benefits
thereon, of $14.0 million and $8.1 million for the quarters
ended September 30, 2001 and 2000, respectively.
4 Available to common and Class B shareholders after excluding
merger and integration costs, net of the tax benefits thereon.
5 "Power ranking" is the result of Media Metrix "audience reach"
multiplied by Media Metrix "unique pages per visitor per
month" and therefore indicates a website's recognition by and
usefulness to consumers (who in Monster.com's case are job
seekers).
6 "Career eyeball minutes" is the result of Media Metrix "unique
visitors" multiplied by Media Metrix "average minutes per
visitor per month" and therefore indicates a website's share
of total career or job seeker audience that month.
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, competition, seasonality 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.
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TMP WORLDWIDE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30,
(in thousands, except per share amounts)
(unaudited)
2001 2000(a)
---- -----
Gross billings:
Interactive $190,855 $140,429
Advertising & Communications 174,074 254,470
eResourcing 90,136 122,976
Executive Search 22,956 47,888
Directional Marketing 163,771 162,789
---------------------------- -------- --------
Total gross billings $641,792 $728,552
============================ ======== ========
Commissions & fees:
Interactive $174,319 $126,027
Advertising & Communications 48,611 56,828
eResourcing 86,749 121,086
Executive Search 22,956 47,888
Directional Marketing 28,538 29,285
---------------------------- -------- --------
Total commissions & fees 361,173 381,114
---------------------------- -------- --------
Operating expenses:
Salaries & related 179,798 194,445
Office & general 71,722 84,772
Marketing & promotion 41,743 50,241
Merger & integration 20,208 14,823
Amortization of intangibles 7,473 5,387
---------------------------- -------- --------
Total operating expenses 320,944 349,668
---------------------------- -------- --------
Operating income 40,229 31,446
---------------------------- -------- --------
Other income (expense):
Interest income, net 1,345 5,589
Other, net 912 (636)
---------------------------- -------- --------
Total other income
(expense), net 2,257 4,953
---------------------------- -------- --------
Income before provision for
income taxes and minority
interests 42,486 36,399
Provision for income taxes 17,389 15,451
---------------------------- -------- --------
Income before minority
interests 25,097 20,948
Minority interests (534) (62)
---------------------------- -------- --------
Net income applicable to
common and Class B common
stockholders $ 25,631 $ 21,010
============================ ======== ========
Adjusted net income:
Net income $ 25,631 $ 21,010
Merger & integration costs 20,208 14,823
Tax benefit of merger &
integration costs (6,256) (6,716)
---------------------------- -------- --------
Adjusted net income $ 39,583 $ 29,117
============================ ======== ========
(a) Restated to reflect pooling of interests transactions completed
during the six months ended June 30, 2001.
TMP WORLDWIDE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended September 30,
(in thousands, except per share amounts)
(unaudited)
2001 2000(a)
---- ----
Net income per common and
===================================
Class B common share:
=================================
Basic $0.23 $0.20
================================= ======= ========
Diluted $0.23 $0.19
================================= ======= ========
Adjusted net income per common and
===================================
Class B common share:
=================================
Basic $0.36 $0.28
================================= ======= ========
Diluted $0.35 $0.26
================================= ======= ========
Weighted average shares outstanding:
===================================
Basic 109,862 105,723
================================= ======= ========
Diluted 113,665 112,533
================================= ======= ========
Adjusted EBITDA(b) $80,990 $60,590
================================= ======= ========
(a) Restated to reflect pooling of interests transactions completed
during the six months ended June 30, 2001.
(b) Earnings before interest, income taxes, depreciation and
amortization, and adjusted to exclude the effects of merger &
integration costs for poolings of interests. EBITDA is presented
to provide additional information about the Company's ability to
meet its future debt service, capital expenditures and working
capital requirements, and is one of the measures which determines
the Company's ability to borrow under its credit facility. EBITDA
should not be considered in isolation or as a substitute for
operating income, cash flows from operating activities, and other
income or cash flow statement data prepared in accordance with
generally accepted accounting principles, or as a measure of the
Company's profitability or liquidity.
TMP WORLDWIDE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30,
(in thousands, except per share amounts)
(unaudited)
2001 2000(a)
---- ----
Gross billings:
Interactive $563,243 $343,953
Advertising & Communications 591,374 779,463
eResourcing 324,049 347,126
Executive Search 86,963 135,240
Directional Marketing 439,118 431,658
---------------------------- ------------- --------------
Total gross billings $2,004,747 $2,037,440
============================ ============= ==============
Commissions & fees:
Interactive $507,586 $307,797
Advertising & Communications 141,129 168,065
eResourcing 311,351 342,590
Executive Search 86,962 135,240
Directional Marketing 74,946 75,666
---------------------------- ------------- --------------
Total commissions & fees 1,121,974 1,029,358
---------------------------- ------------- --------------
Operating expenses:
Salaries & related 574,123 550,657
Office & general 231,521 238,999
Marketing & promotion 152,437 120,701
Merger & integration 61,934 37,146
Amortization of intangibles 19,578 14,549
---------------------------- ------------- --------------
Total operating expenses 1,039,593 962,052
---------------------------- ------------- --------------
Operating income 82,381 67,306
---------------------------- ------------- --------------
Other income (expense):
Interest income, net 10,720 11,583
Other, net 312 (888)
---------------------------- ------------- --------------
Total other income (expense),
net 11,032 10,695
---------------------------- ------------- --------------
Income before provision
for income taxes
and minority interests 93,413 78,001
Provision for income taxes 43,355 36,539
------------------------------- ------------- --------------
Income before minority interests 50,058 41,462
Minority interests (1,094) (386)
------------------------------- ------------- --------------
--------------
Net income applicable to common
and Class B common stockholders $51,152 $41,848
=============================== ============= ==============
==============
Adjusted net income:
Net income $51,152 $41,848
Merger & integration costs 61,934 37,146
Tax benefit of merger &
integration costs (17,137) (9,771)
------------------------------- ------------- --------------
--------------
Adjusted net income $95,949 $69,223
=============================== ============= ==============
==============
(a) Restated to reflect pooling of interests transactions completed
during the six months ended June 30, 2001.
TMP WORLDWIDE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30,
(in thousands, except per share amounts)
(unaudited)
2001 2000(a)
---- ----
Net income per common and
=========================
Class B common share:
=======================
Basic $0.47 $0.40
======================= ============== ==============
Diluted $0.45 $0.38
======================= ============== ==============
Adjusted net income per
common and
=========================
Class B common share:
======================
Basic $0.88 $0.66
====================== ============== ==============
Diluted $0.85 $0.62
====================== ============== ==============
Weighted average shares
outstanding:
=========================
Basic 108,975 104,195
======================= ============== ==============
Diluted 113,215 111,154
======================= ============== ==============
Adjusted E B I T D A(b) $200,158 $145,580
========================= ============== ==============
(a) Restated to reflect pooling of interests transactions completed
during the six months ended June 30, 2001.
(b) Earnings before interest, income taxes, depreciation and
amortization, and adjusted to exclude the effects of merger &
integration costs for poolings of interests. EBITDA is presented
to provide additional information about the Company's ability to
meet its future debt service, capital expenditures and working
capital requirements, and is one of the measures which determines
the Company's ability to borrow under its credit facility. EBITDA
should not be considered in isolation or as a substitute for
operating income, cash flows from operating activities, and other
income or cash flow statement data prepared in accordance with
generally accepted accounting principles, or as a measure of the
Company's profitability or liquidity.
TMP WORLDWIDE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
September 30, June 30, Dec. 31,
2001 2001 2000(a)
------------------ ------------- ------------
Assets:
Cash and cash
equivalents $317,637 $540,791 $576,265
Accounts receivable,
net 557,359 569,293 604,849
Property and
equipment, net 185,126 170,167 153,224
Intangibles, net 903,290 618,912 530,798
Other assets 219,734 257,462 217,809
------------------------------------ ---------------- ----------
Total Assets $2,183,146 $2,156,625 $2,082,945
==================================== ================ ==========
Liabilities and
Stockholders'
Equity:
Accounts payable and
accrued expenses $686,741 $695,756 $717,516
Accrued integration
and restructuring 45,091 31,036 28,014
Deferred commissions
and fees 138,371 157,255 155,796
Other liabilities 36,379 55,419 56,213
Debt 73,611 64,225 46,235
------------------------------------ ---------------- ----------
Total Liabilities 980,193 1,003,691 1,003,774
Stockholders' Equity 1,202,953 1,152,934 1,079,171
------------------------------------ ---------------- ----------
Total Liabilities and
Stockholders' Equity $2,183,146 $2,156,625 $2,082,945
==================================== ================ ==========
(a) Reflects pooling of interests transactions completed during the
six months ended June 30, 2001.
--30--db/ny*
CONTACT: TMP Worldwide
Dan Bustillos, 212/351-7084
dan.bustillos@tmp.com
or
Weber Shandwick
Andrea Retzky, 212/445-8247
aretzky@webershandwick.com
KEYWORD: NEW YORK
INDUSTRY KEYWORD: ADVERTISING/MARKETING COMPUTERS/ELECTRONICS
E-COMMERCE HUMAN RESOURCES INTERNET CONFERENCE CALLS EARNINGS
SOURCE: TMP Worldwide
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
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