SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 28, 2003
TMP Worldwide Inc.
(Exact name of issuer as specified in its charter)
Delaware
(State or other jurisdiction of incorporation)
0-21571 13-3906555
(Commission File Number) (IRS Employer Identification No.)
622 Third Avenue
New York, NY 10017
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (212) 351-7000
None.
(Former address, if changed since last report.)
ITEM 9. REGULATION FD DISCLOSURE.
TMP Worldwide Inc. ("TMP") is furnishing herewith certain summary unaudited
pro-forma information to aid current and potential investors who desire
additional information concerning certain historical income and expense data,
on a pro forma basis, reflecting the proposed spin-off of its eResourcing and
Executive Search segments (Hudson Highland Group, Inc.). The summary
unaudited pro forma information should be read in conjunction with our
quarterly and annual consolidated financial statements and notes thereto,
which are not included herein. The anticipated spin-off is expected to be in
the form of a tax-free dividend to TMP shareholders.
Below are the pro forma commissions & fees and operating expenses for the
quarterly and annual periods in the years ended December 31, 2002 and 2001,
presenting the continuing operations of TMP as if the spin-off dividend had
already occurred ("OldCo") and accounting for these segments on a stand alone
basis for all periods presented; therefore essentially presenting the
pro-forma financial information as if the spin-off had occurred on January 1,
2001.
Also separately stated are the operating results of the business units being
spun-off. The results for these units are presented in a format consistent
with their presentation within the TMP Financial Statements on Forms 10-K and
10-Q as filed with the Securities and Exchange Commission.
The summary unaudited pro forma information has been derived from TMP's
consolidated financial statements and does not purport to represent what TMP's
results of operations would have been had the distribution occurred in the
periods presented or to project our financial performance for any future period.
The attached information is being provided in contemplation of the spin-off and
does not represent the historical financial statements of TMP.
FORWARD LOOKING STATEMENTS
Please be advised that except for historical information, the information
provided in this presentation constitutes 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, competition, seasonality and other risks discussed in our Form
10-K and our other filings made with the Securities and Exchange Commission.
(All other items on this report are inapplicable.)
TMP WORLDWIDE, INC AND SUBSIDIARIES ("OldCo")
PRO FORMA QUARTERLY FINANCIAL INFORMATION
(IN MILLIONS OF DOLLARS)
(UNAUDITED)
2002 THREE MONTHS ENDED
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March 31, June 30, September 30, December 31, Total Year
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COMMISSIONS AND FEES $ 181.5 $ 177.0 $ 179.5 $ 164.8 $ 702.8
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SALARY AND RELATED 78.1 79.7 78.1 79.6 315.5
OFFICE AND GENERAL 40.6 41.5 36.2 41.0 159.3
MARKETING AND PROMOTION 27.7 31.8 37.7 31.1 128.3
AMORTIZATION OF INTANGIBLES 0.7 0.6 0.6 0.5 2.4
MERGER AND INTEGRATION 7.0 (2.3) - (1.5) 3.2
BUSINESS REORGANIZATION AND OTHER SPECIAL CHARGES - 61.7 2.2 40.9 104.8
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TOTAL OPERATING EXPENSES 154.1 213.0 154.8 191.6 713.5
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OPERATING INCOME (LOSS) $ 27.4 $ (36.0) $ 24.7 $ (26.8) $ (10.7)
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2001 THREE MONTHS ENDED
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March 31, June 30, September 30, December 31, Total Year
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COMMISSIONS AND FEES 220.1 221.4 230.3 204.7 $ 876.5
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SALARY AND RELATED 88.6 86.8 87.2 75.8 338.4
OFFICE AND GENERAL 50.2 41.1 46.0 41.2 178.5
MARKETING AND PROMOTION 48.9 51.3 37.2 39.2 176.6
AMORTIZATION OF INTANGIBLES 2.8 2.7 3.4 3.2 12.1
MERGER AND INTEGRATION 8.4 15.1 9.4 (3.6) 29.3
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TOTAL OPERATING EXPENSES 198.9 197.0 183.2 155.8 734.9
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OPERATING INCOME $ 21.2 $ 24.4 $ 47.1 $ 48.9 $ 141.6
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HUDSON HIGHLAND GROUP, INC.
PRO FORMA QUARTERLY FINANCIAL INFORMATION
(IN MILLIONS OF DOLLARS)
(UNAUDITED)
2002 THREE MONTHS ENDED
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March 31, June 30, September 30, December 31, Total Year
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COMMISSIONS AND FEES $ 109.3 $ 113.9 $ 104.6 $ 84.0 $ 411.8
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SALARY AND RELATED 85.9 81.8 76.4 79.7 323.8
OFFICE AND GENERAL 30.1 30.5 31.4 25.1 117.1
MARKETING AND PROMOTION 2.6 2.6 2.7 3.0 10.9
AMORTIZATION OF INTANGIBLES 0.2 0.2 0.2 0.2 0.8
MERGER AND INTEGRATION 5.8 1.2 (0.9) (0.7) 5.4
BUSINESS REORGANIZATION AND OTHER SPECIAL CHARGES - 52.7 0.4 20.4 73.5
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TOTAL OPERATING EXPENSES 124.6 169.0 110.2 127.7 531.5
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OPERATING LOSS $ (15.3) $ (55.1) $ (5.6) $ (43.7) $ (119.7)
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2001 THREE MONTHS ENDED
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March 31, June 30, September 30, December 31, Total Year
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COMMISSIONS AND FEES $ 157.1 $ 162.2 $ 130.8 $ 121.4 $ 571.5
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SALARY AND RELATED 109.9 109.0 92.6 85.6 397.1
OFFICE AND GENERAL 36.5 32.1 25.7 31.4 125.7
MARKETING AND PROMOTION 5.8 4.7 4.4 4.5 19.4
AMORTIZATION OF INTANGIBLES 3.1 3.5 4.1 3.6 14.3
MERGER AND INTEGRATION 11.8 6.4 10.8 14.2 43.2
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TOTAL OPERATING EXPENSES 167.1 155.7 137.6 139.3 599.7
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OPERATING INCOME (LOSS) $ (10.0) $ 6.5 $ (6.8) $ (17.9) $ (28.2)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
TMP WORLDWIDE INC.
(Registrant)
By: /s/ Michael Sileck
-------------------------------------
Michael Sileck
Chief Financial Officer
Dated: March 28, 2003