Monster Q1 net loss at $10.3 mn

Global online recruiting company Monster Worldwide today announced a net loss of $10.3 million for the first quarter ended March 31, 2009, largely due to the global economic slowdown. 
    
Commenting on the results, Monster Chairman, President and Chief Executive Officer Sal Iannuzzi said, "As anticipated, the challenging global economy continued to severely impact customer demand during the first quarter of 2009."  

The company had a net income of $22.5 million in the corresponding quarter a year ago, a Monster Worldwide statement said.     
Iannuzzi further said "our strict and disciplined approach to cost containment enabled us to preserve our liquidity position, maintain necessary investments and report a break-even quarter."   
  
Monster's total revenue declined 31% to $254 million, compared with $366 million in the comparable quarter of 2008.     
The online recruiting company generated 43% of its revenue outside the United States and total revenue was negatively impacted by $27 million from unfavourable foreign exchange rates.  

 

Foreign exchange rates negatively impacted consolidated pre-tax operating income by approximately $two million. Operating expenses included around $27 million of incremental marketing costs that would not be recurred in any of the next three quarters of 2009.  

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.    

Iannuzzi said : "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," Iannuzzi added.

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 in the prior year period. 

Monster's deferred revenue balance as on 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 in the fourth quarter of 2008.