Monster Revenue Down, Profits Up
Citing tough competition and saying the bulk of its corporate restructuring efforts have been implemented, Maynard-based employment recruiter Monster Worldwide Inc. reported mixed results for its first quarter of 2013.
The firm said revenue from continuing operations during the period ending March 31 was $212 million, down from $234 million last year.
Meanwhile, net income was up to $5 million, or 4 cents per share, compared to $3.7 million or 3 cents a year ago. The net income included a loss of $6.1 million, or 6 cents per share, due to discontinued operations. In 2012, that loss was $9.6 million.
Monster said business from its proprietary offerings such as Career Ad Network, Power Resume Search and SeeMore outperformed its traditional product offerings and contributed about 20 percent to its global careers business. It also focused on rolling out the new products globally, particularly in France and the Netherlands. The firm left unprofitable businesses in Brazil, Mexico and Turkey and sold jobs listings website ChinaHR.
"We recognize that in this tepid employment market, it is imperative to continuously strengthen our competitive advantages so that we are well positioned for growth when the job market rebounds," said Chairman, President and CEO Sal Iannuzzi said. "With the majority of our restructuring efforts now behind us, we are confident in our ability to maintain a healthy balance sheet and a strong liquidity position to continue to support our growth initiatives."
At the end of the quarter, Monster's cash and cash equivalents were $131 million, compared to $148 million as of the end of 2012.
As a result of Monster's restructuring that aimed to cut operating expenses by $130 million a year, it recorded pre-tax restricting charges in continuing operations of $13 million and a net loss of $6 million from discontinued operations during the first quarter. The company said it doesn't expect similar charges in the future.
The company also announced a $200-million stock buyback over two years, which replaces the $250 million buyback that expired April 25. Monster said it didn't complete the previous buyback due to its restructuring, but did buy 14 million shares for $107 million.
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