Monster Worldwide (MWW) Q2 2012 Earnings Call August 02, 2012 8:30 am ET Executives Lori C. Chaitman - Former Vice President of Investor Relations Salvatore Iannuzzi - Chairman, Chief Executive Officer and President James M. Langrock - Chief Financial Officer and Executive Vice President Analysts William G. Bird - Lazard Capital Markets LLC, Research Division Douglas M. Arthur - Evercore Partners Inc., Research Division Timothy McHugh - William Blair & Company L.L.C., Research Division Craig A. Huber - Access 3:42, LLC Tobey Sommer - SunTrust Robinson Humphrey, Inc., Research Division John Janedis - UBS Investment Bank, Research Division Jeffrey M. Silber - BMO Capital Markets U.S. Mark S. Mahaney - Citigroup Inc, Research Division Glenn Greene - Oppenheimer & Co. Inc., Research Division Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division Presentation Operator
Before we begin, I'd like to remind you that except for historical information, the statements made during this conference call constitute forward-looking statements under applicable securities laws. 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 or dispositions, competition and the other risks discussed in our Form 10-K and our filings made with the Securities and Exchange Commission.With that, I'd like to turn the call over to Sal for his comments. Sal? Salvatore Iannuzzi Thank you, Lori. Good morning, everyone, and thank you for joining us today for our Monster's Second Quarter Conference Call. I will provide a high-level review of the quarter, the current macroeconomic conditions and discuss our outlook for the third quarter. James will give additional financial detail in his comments. As we all now appreciate, the global business environment continues to be weak and uncertain particularly in Europe. During the quarter, we continued to execute our strategy and are gratified that increasing acceptance of our new product portfolio resulted in strong bookings in North America and helped to buffer weakness in Europe and in Asia. Consolidated bookings during the quarter was $242 million, flat on a current -- on a constant currency basis. In North America, bookings increased 14%. We believe that this strong performance in North America demonstrates the continuing success of our new product portfolio and focus on key verticals such as Government and Staffing. In addition, the action we took in the first quarter to increase both the quantity and quality of our traffic in the United States are continuing to pay off.
Europe's booking was down 15% on a current -- on a constant currency basis. Asia Pac bookings was down 7%. We believe that these results are consistent with global macroeconomic conditions.Consolidated revenue was $237 million, a decrease of 5% on a current -- on a constant currency basis. EBITDA was $37 million and EBITDA margin was 15%. Continued strong EBITDA even during current difficult economic environment allow us to apply a 3 million shares during the quarter and maintain a strong liquidity position. EPS was $0.06 versus $0.04 in Q1 and $0.09 last year. As a result of tight expense control during the quarter, EPS was in the middle of our guidance range while revenue was at the lower end of the range. Summarizing the quarter. Total bookings were flat on the constant currency basis. North American bookings increased 14%, demonstrating continued adoption of our new product portfolio in the Government, Enterprise and Staffing channels. As an example, during the quarter, Kforce, a major professional staffing and solutions firm, decided to fully integrate Power Resume Search, powered by our 6Sense technology, across their entire organization. As we have discussed, while the adoption of PRS has been very strong, adoption in the staffing sector has lagged for a variety of reasons. We are actively working with other major staffing companies on both PRS and SeeMore. Strong expense management resulted in 6% EPS. As we consider the third quarter, we believe that it is likely that the current weak and uncertain economic environment will continue. In this environment, we continue to position ourselves offensively and defensively. On the offense, we continue to aggressively bring our new products to our clients on a global basis. And we will make investments in marketing to take advantage of specific opportunities. On the defense, we are carefully controlling operating expenses and protecting profitability. We are able to accomplish both at the same time because of the strength of our product portfolio.
For the third quarter, we anticipate that bookings will be flat to down 10% on a year-over-year basis. Please recall that last year our Government business had a very strong third quarter as a result of government spending resuming in light of the resolution of the federal budget impact. We anticipate that revenue would be in the range of down 12% to down 6%. We will continue to carefully manage operating expense as a result of -- and as a result, pardon me, EPS will be in the range of $0.02 to $0.07.Read the rest of this transcript for free on seekingalpha.com