Monster Pushes For Shareholder Approval Of Randstad Deal As Q3 Results Slide

Monster Worldwide (NASDAQ:MWW) announced its results for the third quarter Friday, October 21st. The company’s impending acquisition by Randstad Holding for $429 million at a purchase price of $3.40 per share was again the primary focus of the earnings release. Monster reiterated its support and stated that it would soon publish an investor presentation highlighting its benefits for Monster shareholders.  Yet Monster’s largest shareholder, MediaNews Group Inc., is dissuading shareholders from accepting Randstad’s offer, citing its arbitrary and low valuation.  Still, the acquisition is expected to close in the fourth quarter of 2016. ^[1]

For Q3 2016 ended September 30th, Monster’s revenue declined 13% over the prior year quarter to about $145 million, in line with the preliminary results released by the company earlier this month. The 13% top line fall was primarily due to the decline in revenue from North America, which declined 16% on a year over year basis to $99.7 million. The company reported an operating loss of $193 million in Q3 2016, compared to an operating income of $10.8 million in the prior year quarter. The significant drop in Monster’s operating income was primarily due to goodwill and asset impairment charges of over $182 million. This resulted in the company reporting a net loss of about $181 million or $2.03 per share for the quarter, which was below market expectations of 4 cents a share.

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1. Monster Comments on Randstad Acquisition, Oct 21 2016 [↩]