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Robert Half International Reports Second-Quarter Financial Results Net Income Per Share Triples on 22 Percent Increase in Revenues From Year-Ago Period

MENLO PARK, Calif., July 20, 2011 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the second quarter ended June 30, 2011.  

For the quarter ended June 30, 2011, net income was $36.4 million or $.25 per share, on revenues of $938.0 million.  Net income for the prior year's second quarter was $12.2 million or $.08 per share, on revenues of $769.1 million.    

For the six months ended June 30, 2011, net income was $63.1 million or $.43 per share, on revenues of $1.82 billion.  For the six months ended June 30, 2010, net income was $20.7 million or $.13 per share, on revenues of $1.51 billion.

"This is the fifth consecutive quarter we have reported accelerating year-over-year growth rates for our consolidated revenues," said Harold M. Messmer, Jr., chairman and CEO of Robert Half International.  "Second-quarter revenues increased 22 percent from one year ago, and second-quarter income per share tripled from the year-ago period.

"We saw broad-based, improving demand for our professional staffing services and Protiviti both in North America and abroad.  Our permanent placement and technology staffing divisions were particularly strong," Messmer said.  "The pricing environment also continued to improve during the quarter, which contributed to higher gross margins."  

Robert Half International management will conduct a conference call today at 5 p.m. EDT following the release.  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. EDT today and ending at 8 p.m. EDT on July 27.  The dial-in number for the replay is 800-642-1687 (+1-706-645-9291 outside the United States).  To access the replay, enter conference ID# 75122534.  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 Inc., 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




ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)


Quarter


Six Months


Ended June 30,


Ended June 30,


2011

2010


2011

2010


(Unaudited)


(Unaudited)

Net service revenues

$   937,966

$   769,090


$1,818,835

$1,506,263

Direct costs of services

565,678

479,232


1,108,458

948,277

Gross margin

372,288

289,858


710,377

557,986

Selling, general and administrative expenses

311,202

267,519


604,888

523,187

Amortization of intangible assets

40

46


79

315

Interest income

(238)

(94)


(450)

(168)

Income before income taxes

61,284

22,387


105,860

34,652

Provision for income taxes

24,859

10,206


42,730

13,996

Net income

$     36,425

$     12,181


$     63,130

$    20,656

Net income available to common Stockholders - diluted      

$     35,890

$     11,660


$     62,194

$    19,286

Diluted net income per share

$           .25

$           .08


$           .43

$          .13

Shares:  






    Basic

141,286

143,100


141,966

143,667

    Diluted

142,585

144,331


143,357

144,999




ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)


Quarter


Six Months


Ended June 30,


Ended June 30,


2011

2010


2011

2010


(Unaudited)


(Unaudited)

REVENUES:






Accountemps

$   345,272

$   294,523


$   675,598

$   583,625

OfficeTeam

188,681

150,420


365,012

291,854

Robert Half Technology

105,100

81,765


201,659

156,919

Robert Half Management Resources

113,316

93,089


224,782

186,085

Robert Half Finance & Accounting

80,663

56,133


148,267

104,772

Protiviti

104,934

93,160


203,517

183,008

Total

$   937,966

$   769,090


$1,818,835

$1,506,263

GROSS MARGIN:






Temporary and consultant staffing

$  263,485

$  211,430


$   509,153

$   412,499

Permanent placement staffing

80,583

56,110


148,172

104,704

Risk consulting and internal audit services

28,220

22,318


53,052

40,783

Total

$  372,288

$  289,858


$   710,377

$   557,986

OPERATING INCOME:






Temporary and consultant staffing

$    46,241

$    23,571


$     84,311

$     40,517

Permanent placement staffing

13,875

5,540


21,742

8,656

Risk consulting and internal audit services

970

(6,772)


(564)

(14,374)

Total

$    61,086

$    22,339


$   105,489

$     34,799

SELECTED CASH FLOW INFORMATION:






Amortization of intangible assets

$           40

$           46


$            79

$         315

Depreciation expense

$    12,947

$    13,987


$     25,703

$    28,910

Capital expenditures

$    13,812

$      6,136


$     28,375

$    14,412

Open market repurchases of common stock (shares)

2,000

2,486


2,958

2,486




ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




June 30,


2011

2010


(Unaudited)




SELECTED BALANCE SHEET INFORMATION:



Cash and cash equivalents

$   261,071

$   290,044

Accounts receivable, less allowances

$   495,381

$   384,642

Total assets

$1,301,781

$1,214,270

Current liabilities

$   453,228

$   357,659

Notes payable and other indebtedness, less current portion

$       1,600

$       1,719

Total stockholders' equity

$   816,630

$   828,821




SOURCE Robert Half International Inc.



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