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| MWW > SEC Filings for MWW > Form 8-K on 26-Jan-2012 | All Recent SEC Filings |
26-Jan-2012
Results of Operations and Financial Condition, Costs Associated with Exit
On January 26, 2012, Monster Worldwide, Inc. (the "Company") announced its results of operations for the quarter and year ended December 31, 2011. A copy of the Company's press release announcing its results of operations for the quarter and year ended December 31, 2011 is attached hereto as Exhibit 99.1. A copy of the supplemental financial information issued by the Company in connection with the press release is attached hereto as Exhibit 99.2.
The information in Item 2.02 of this report, including Exhibits 99.1 and 99.2,
is being furnished and shall not be deemed "filed" for the purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to the liabilities of that section, nor shall it be
deemed incorporated by reference in any filing of the Company under the
Securities Act of 1933, as amended, or the Exchange Act.
On January 24, 2012, the Company committed to take a series of strategic restructuring actions. The Company's decision to adopt the strategic restructuring actions resulted from the Company's desire to provide the Company with more flexibility to invest in marketing and sales activities in order to improve its long-term growth prospects and profitability.
The strategic restructuring actions include reducing the Company's current workforce by approximately 400 associates (or 7% of its full-time staff), the consolidation of certain office facilities, and continuing discretionary-spending and office and general expense controls. The Company anticipates that a majority of the strategic restructuring actions, and a majority of the charges associated with such actions, will be taken in the first quarter of 2012. The Company also anticipates that all strategic restructuring actions will be completed by the end of 2012.
As a result of the restructuring initiatives, the Company expects to record an aggregate pre-tax charge within the range of $30 million to $40 million, beginning in the first quarter of 2012. The breakdown of the expected aggregate pre-tax charge is as follows:
Category Range Employee Severance $17 million - $21 million Consolidation of Office Facilities $9 million - $12 million Fixed Asset Write-Offs and Accelerated Depreciation $3 million - $5 million Other (Contract termination costs, relocation costs and professional fees) $1 million - $2 million |
Of the aggregate pre-tax charge, the Company expects to incur approximately $25 million to $35 million in cash expenditures.
(d) Exhibits.
99.1 Press Release of the Company Issued on January 26, 2012 Reporting the
Company's Results for the Quarter and Year Ended December 31, 2011.
99.2 Supplemental Financial Information.
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