2014

Robert Half International Reports Fourth-Quarter Financial Results Global Operating Income Up 35 Percent Year Over Year

MENLO PARK, Calif., Jan. 29, 2013 /PRNewswire/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2012. 

For the quarter ended December 31, 2012, net income was $58.6 million, or $.42 per share, on revenues of $1.03 billion.  Net income for the prior year's fourth quarter was $42.6 million, or $.30 per share, on revenues of $973.5 million.   

For the year ended December 31, 2012, net income was $209.9 million, or $1.50 per share, on revenues of $4.11 billion.  For the year ended December 31, 2011, net income was $149.9 million, or $1.04 per share, on revenues of $3.78 billion.

"We were pleased with the fourth-quarter financial results for the company," said Harold M. Messmer, Jr., chairman and CEO of Robert Half International.  "Global operating income was up 35 percent as a result of continued gross-margin expansion; lower selling, general and administrative expense ratios; and a solid fourth quarter for Protiviti.  This is the 11th consecutive quarter in which net income and earnings per share have grown 20 percent or more on a year-over-year basis."

Messmer added, "Revenue growth in our staffing operations reflects ongoing demand for skilled talent on an interim and full-time basis, most notably in the United States."

Robert Half International management will conduct a conference call today at 5 p.m. EST.  The dial-in number is 877-814-0475 (+1-706-643-9224 outside the United States).  The password to access the call is "Robert Half."  A taped recording of this call will be available for replay beginning at approximately 8 p.m. EST today and ending at 8 p.m. EST on February 28.  The dial-in number for the replay is 855-859-2056 (+1-404-537-3406 outside the United States).  To access the replay, enter conference ID# 84605710.  The conference call also will be archived in audio format on the company's website at www.rhi.com.

Founded in 1948, Robert Half International, the world's first and largest specialized staffing firm, is a recognized leader in professional consulting and staffing services, and is the parent company of Protiviti®, a global consulting and internal audit firm composed of experts in risk, advisory and transaction services.  The company's specialized staffing divisions include Accountemps®, Robert Half® Finance & Accounting and Robert Half® Management Resources, for temporary, full-time and senior-level project professionals, respectively, in the fields of accounting and finance; OfficeTeam®, for highly skilled temporary administrative support personnel; Robert Half® Technology, for information technology professionals; Robert Half® Legal, for legal personnel; and The Creative Group®, for interactive, design, marketing, advertising and public relations professionals.

Robert Half International has staffing and consulting operations in more than 400 locations worldwide. 

Certain information contained in this press release may be deemed forward-looking statements regarding events and financial trends that may affect the company's future operating results or financial positions.  These statements may be identified by words such as "estimate", "forecast", "project", "plan", "intend", "believe", "expect", "anticipate", or variations or negatives thereof, or by similar or comparable words or phrases.  Forward‑looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.

These risks and uncertainties include, but are not limited to, the following: the global financial and economic situation; changes in levels of unemployment and other economic conditions in the United States or foreign countries where the company does business, or in particular regions or industries; reduction in the supply of candidates for temporary employment or the company's ability to attract candidates; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the company's services, on the company's ability to maintain its margins; the possibility of the company incurring liability for its activities, including the activities of its temporary employees, or for events impacting its temporary employees on clients' premises; the possibility that adverse publicity could impact the company's ability to attract and retain clients and candidates; the success of the company in attracting, training, and retaining qualified management personnel and other staff employees; the company's ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the company's reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the company's SEC filings; the ability of the company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the company will incur as a result of health care reform legislation may adversely affect the company's profit margins or the demand for the company's services; the possibility that the company's computer and communications hardware and software systems could be damaged or their service interrupted; and the possibility that the company may fail to maintain adequate financial and management controls and as a result suffer errors in its financial reporting. 

Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.

Because long-term contracts are not a significant part of the company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results.  The company undertakes no obligation to update information contained in this release.

A copy of this release is available at www.rhi.com.


ATTACHED:

Summary of Operations


Supplemental Financial Information


Non-GAAP Financial Measures

 

 




ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)






  Quarter


Year


    Ended December 31,


Ended December 31,


2012

2011


2012

2011

Net service revenues

   (Unaudited)


  (Unaudited)

$1,034,213

$   973,473


$4,111,213

$3,776,976

Direct costs of services

617,788

586,151


2,462,153

2,287,374

Gross margin

416,425

387,322


1,649,060

1,489,602

Selling, general and administrative   

   expenses

319,302

315,479


1,305,614

1,240,184

Amortization of intangible assets

211

35


398

153

Interest income

(330)

(353)


(1,197)

(951)

Income before income taxes

97,242

72,161


344,245

250,216

Provision for income taxes

38,623

29,537


134,303

100,294

Net income

$     58,619

$     42,624


$   209,942

$  149,922

Net income available to common

     stockholders - diluted      

$     58,322

$     42,037


$   208,867

$  147,772

Diluted net income per share

$           .42

$           .30


$         1.50

$        1.04

Shares: 






     Basic

136,929

138,581


138,201

140,479

     Diluted

138,439

140,059


139,409

141,790

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)







Quarter

Ended December 31,


Year

Ended December 31,


2012

2011


2012

2011


(Unaudited)


        (Unaudited)











REVENUES:











Accountemps

$    379,228

36.7%

$  363,820

37.4%


$ 1,526,934

37.2%

$ 1,405,782

37.2%


OfficeTeam

208,385

20.1%

195,862

20.1%


814,858

19.8%

757,146

20.1%


Robert Half Technology

120,217

11.6%

112,981

11.6%


476,458

11.6%

428,482

11.3%


Robert Half Management Resources

125,869

12.2%

116,563

12.0%


506,036

12.3%

459,589

12.2%


Robert Half Finance & Accounting

80,438

7.8%

74,824

7.7%


334,198

8.1%

302,155

8.0%


Protiviti

120,076

11.6%

109,423

11.2%


452,729

11.0%

423,822

11.2%


Total

$ 1,034,213

100.0%

$  973,473

100.0%


$ 4,111,213

100.0%

$ 3,776,976

100.0%











GROSS MARGIN:











Temporary and consultant staffing

$    303,783

36.4%

$  282,412

35.8%


$ 1,197,773

36.0%

$ 1,074,006

35.2%


Permanent placement staffing

80,371

99.9%

74,756

99.9%


334,029

99.9%

301,945

99.9%


Risk consulting and internal audit services

32,271

26.9%

30,154

27.6%


117,258

25.9%

113,651

26.8%


Total

$    416,425

40.3%

$  387,322

39.8%


$ 1,649,060

40.1%

$ 1,489,602

39.4%











OPERATING INCOME:











Temporary and consultant staffing

$      80,172

9.6%

$    63,594

8.1%


$    276,826

8.3%

$    209,101

6.9%


Permanent placement staffing

11,583

14.4%

5,879

7.9%


55,745

16.7%

35,340

11.7%


Risk consulting and internal audit services

5,368

4.5%

2,370

2.2%


10,875

2.4%

4,977

1.2%


Total

$      97,123

9.4%

$    71,843

7.4%


$    343,446

8.4%

$    249,418

6.6%











SELECTED CASH FLOW INFORMATION:











Amortization of intangible assets

$           211


$           35



$           398


$           153



Depreciation expense

$      12,003


$    12,753



$      48,326


$      51,262



Capital expenditures

$      14,240


$    14,827



$      50,056


$      56,535



Open market repurchases of common stock (shares)

1,187


286



4,689


5,308


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




  December 31,


2012

2011


(Unaudited)





SELECTED BALANCE SHEET INFORMATION:



        Cash and cash equivalents

$   287,635

$   279,336

        Accounts receivable, less allowances

$   512,852

$   493,327

        Total assets

$1,381,271

$1,311,836

        Current liabilities

$   501,637

$   473,001

        Notes payable and other indebtedness,

            less current portion

$       1,428

$       1,545

        Total stockholders' equity

$   842,011

$   800,505

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES

The financial results of Robert Half International Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission ("SEC").  To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with revenue growth rates derived from non-GAAP revenue amounts.

Variations in the Company's financial results include the impact of changes in foreign currency exchange rates and billing days.  The Company provides "same billing days and constant currency" revenue growth calculations to remove the impact of these items.  These calculations show the year-over-year revenue growth rates for the Company's staffing lines of business on both a reported basis and also on a same-day, constant-currency basis for global, U.S. and international operations.  This information is presented for each of the five most recent quarters.  The Company has provided this data because management believes it better reflects the Company's actual revenue growth rates and aids in evaluating revenue trends over time.  The Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days and constant currency exchange rates.

The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently.  The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual revenue growth derived from revenue amounts presented in accordance with GAAP.  The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results.  A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


STAFFING REVENUE GROWTH RATES (%) (UNAUDITED):


Year-Over-Year Growth Rates

(As Reported)


Non-GAAP Year-Over-Year Growth Rates

(Same Billing Days and Constant Currency)


2011

2012


2011

2012













Global

Q4

Q1

Q2

Q3

Q4


Q4

Q1

Q2

Q3

Q4

Accountemps

14.0

16.7

10.3

4.1

4.2


15.4

16.3

12.8

7.1

2.8

OfficeTeam

12.3

13.7

7.5

3.6

6.4


13.8

13.6

10.3

7.3

5.2

RH Technology

22.7

19.8

13.8

6.3

6.4


24.1

18.8

14.8

8.0

4.6

RH Management Resources

13.0

15.0

10.9

6.9

8.0


14.6

15.1

14.9

11.5

6.7

Temporary and consultant staffing

14.6

16.1

10.2

4.7

5.6


16.2

15.8

12.8

7.9

4.2

Permanent placement staffing

26.2

22.6

10.5

3.4

7.5


28.1

22.5

14.7

8.0

6.5

Total

15.5

16.6

10.2

4.6

5.8


17.1

16.3

13.0

7.9

4.4













United States












Temporary and consultant staffing

16.1

20.2

16.5

10.0

9.1


17.5

19.0

16.9

11.4

7.4

Permanent placement staffing

35.2

29.3

22.0

15.2

16.9


36.8

28.1

22.4

16.7

15.0

Total

17.2

20.8

16.9

10.4

9.6


18.6

19.6

17.3

11.8

7.9













International












Temporary and consultant staffing

10.7

6.2

-5.2

-8.7

-3.8


12.6

7.8

2.8

-0.8

-4.4

Permanent placement staffing

16.6

15.4

-1.9

-10.2

-4.1


18.9

16.5

6.5

-1.9

-3.9

Total

11.5

7.5

-4.7

-8.9

-3.8


13.5

9.0

3.3

-1.0

-4.4

 

The non-GAAP financial measures included in the table above adjust for the following items:

Foreign Currency Translation.  The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates.  In order to calculate "Constant Currency" revenue growth rates, as-reported amounts are retranslated using foreign exchange rates from the prior year's comparable period.

Billing Days.  The "As Reported" revenue growth rates are based upon reported revenues.  Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all Staffing lines of business.  In order to remove the fluctuations caused by comparable periods having different billing days, the company calculates "same billing day" revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period, to arrive at a "per billing day" amount.  The "same billing day" growth rates are then calculated based upon the "per billing day" amounts.

The term "same billing days and constant currency" means that the impact of different billing days has been removed from constant currency calculation.  A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein on Pages 10-11.

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Staffing Revenue Growth – GLOBAL


Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012







Accountemps






As Reported

14.0

16.7

10.3

4.1

4.2

Billing Days Impact

1.3

-1.1

0.4

1.3

-1.6

Currency Impact

0.1

0.7

2.1

1.7

0.2

Same Billing Days and Constant Currency

15.4

16.3

12.8

7.1

2.8







OfficeTeam






As Reported

12.3

13.7

7.5

3.6

6.4

Billing Days Impact

1.3

-1.1

0.3

1.3

-1.7

Currency Impact

0.2

1.0

2.5

2.4

0.5

Same Billing Days and Constant Currency

13.8

13.6

10.3

7.3

5.2







Robert Half Technology






As Reported

22.7

19.8

13.8

6.3

6.4

Billing Days Impact

1.4

-1.1

0.3

1.3

-1.7

Currency Impact

0.0

0.1

0.7

0.4

-0.1

Same Billing Days and Constant Currency

24.1

18.8

14.8

8.0

4.6







Robert Half Management Resources






As Reported

13.0

15.0

10.9

6.9

8.0

Billing Days Impact

1.3

-1.1

0.3

1.4

-1.7

Currency Impact

0.3

1.2

3.7

3.2

0.4

Same Billing Days and Constant Currency

14.6

15.1

14.9

11.5

6.7







Temporary and consultant staffing






As Reported

14.6

16.1

10.2

4.7

5.6

Billing Days Impact

1.4

-1.1

0.4

1.3

-1.6

Currency Impact

0.2

0.8

2.2

1.9

0.2

Same Billing Days and Constant Currency

16.2

15.8

12.8

7.9

4.2







Permanent placement staffing






As Reported

26.2

22.6

10.5

3.4

7.5

Billing Days Impact

1.5

-1.2

0.3

1.3

-1.7

Currency Impact

0.4

1.1

3.9

3.3

0.7

Same Billing Days and Constant Currency

28.1

22.5

14.7

8.0

6.5







Total






As Reported

15.5

16.6

10.2

4.6

5.8

Billing Days Impact

1.4

-1.1

0.4

1.3

-1.7

Currency Impact

0.2

0.8

2.4

2.0

0.3

Same Billing Days and Constant Currency

17.1

16.3

13.0

7.9

4.4

 

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Staffing Revenue Growth – UNITED STATES


Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012







Temporary and consultant staffing






As Reported

16.1

20.2

16.5

10.0

9.1

Billing Days Impact

1.4

-1.2

0.4

1.4

-1.7

Currency Impact

Same Billing Days and Constant Currency

17.5

19.0

16.9

11.4

7.4







Permanent placement staffing






As Reported

35.2

29.3

22.0

15.2

16.9

Billing Days Impact

1.6

-1.2

0.4

1.5

-1.9

Currency Impact

Same Billing Days and Constant Currency

36.8

28.1

22.4

16.7

15.0







Total






As Reported

17.2

20.8

16.9

10.4

9.6

Billing Days Impact

1.4

-1.2

0.4

1.4

-1.7

Currency Impact

Same Billing Days and Constant Currency

18.6

19.6

17.3

11.8

7.9

 

Year-Over-Year Staffing Revenue Growth – INTERNATIONAL


Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012







Temporary and consultant staffing






As Reported

10.7

6.2

-5.2

-8.7

-3.8

Billing Days Impact

1.4

-1.0

0.3

1.2

-1.5

Currency Impact

0.5

2.6

7.7

6.7

0.9

Same Billing Days and Constant Currency

12.6

7.8

2.8

-0.8

-4.4







Permanent placement staffing






As Reported

16.6

15.4

-1.9

-10.2

-4.1

Billing Days Impact

1.4

-1.1

0.4

1.3

-1.4

Currency Impact

0.9

2.2

8.0

7.0

1.6

Same Billing Days and Constant Currency

18.9

16.5

6.5

-1.9

-3.9







Total






As Reported

11.5

7.5

-4.7

-8.9

-3.8

Billing Days Impact

1.4

-1.0

0.3

1.1

-1.6

Currency Impact

0.6

2.5

7.7

6.8

1.0

Same Billing Days and Constant Currency

13.5

9.0

3.3

-1.0

-4.4

 

SOURCE Robert Half International Inc.



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