Robert Half International Reports Second-Quarter Financial Results

MENLO PARK, Calif., July 23, 2013 /PRNewswire/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2013. 

For the quarter ended June 30, 2013, net income was $63.1 million, or $.46 per share, on revenues of $1.06 billion.  Net income for the prior year's second quarter was $45.3 million, or $.32 per share, on revenues of $1.03 billion.  Net income and income per share for the prior year's second quarter were reduced by $8.1 million, or $.06 per share, related to a nonrecurring litigation settlement and the resolution of certain tax matters disclosed in the company's July 5, 2012, Form 8-K filing.

For the six months ended June 30, 2013, net income was $119.0 million, or $.86 per share, on revenues of $2.09 billion.  For the six months ended June 30, 2012, net income was $93.7 million, or $.67 per share, on revenues of $2.04 billion.   

Harold M. Messmer, Jr., chairman and CEO of Robert Half International, said: "Robert Half saw continued demand for our professional services during the quarter, and we were pleased with the company's overall performance.  Revenue growth was concentrated in the United States, which has been the case for the past several quarters.  Within our staffing lines of business, our Robert Half Technology division reported the most sizable revenue gains.  Protiviti also had another excellent quarter, with revenues reaching their highest level since the fourth quarter of 2007."

Messmer added, "Despite ongoing softness in international markets, this is the 13th consecutive quarter in which net income and earnings per share have grown 15 percent or more on a year-over-year basis."

Robert Half International management will conduct a conference call today at 5 p.m. EDT.  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 August 23.  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# 95343322.  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 healthcare 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/InvestorCenter.

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


Six Months


    Ended June 30,


Ended June 30,


2013

2012


2013

2012

Net service revenues

   (Unaudited)


(Unaudited)




$1,063,228

$1,028,383


$2,086,912

$2,043,827

Direct costs of services

631,120

613,080


1,244,514

1,226,441

Gross margin

432,108

415,303


842,398

817,386

Selling, general and administrative expenses

331,314

343,264


652,099

665,282

Amortization of intangible assets

434

52


867

87

Interest income

(236)

(285)


(540)

(519)

Income before income taxes

100,596

72,272


189,972

152,536

Provision for income taxes

37,507

26,943


71,020

58,873

Net income

$     63,089

$     45,329


$    118,952

$      93,663

Net income available to common

     stockholders - diluted      

$     63,088

$     45,101


$    118,948

$      93,171

Diluted net income per share

$           .46

$           .32


$            .86

$            .67







Shares: 






     Basic

136,385

138,588


136,845

138,986

     Diluted

137,659

139,739


138,024

140,036

 

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)






Quarter

Ended June 30,


Six Months

Ended June 30,


2013

2012


2013

2012


(Unaudited)


(Unaudited)

REVENUES:










Accountemps

$    378,515

35.6%

$   381,000

37.1%


$    755,129

36.2%

$    766,418

37.5%

OfficeTeam

207,683

19.5%

202,764

19.7%


409,320

19.6%

403,229

19.7%

Robert Half Technology

131,751

12.4%

119,576

11.6%


252,752

12.1%

235,213

11.5%

Robert Half Management Resources

124,120

11.7%

125,668

12.2%


248,290

11.9%

253,805

12.4%

Robert Half Finance & Accounting

90,347

8.5%

89,141

8.7%


173,724

8.3%

172,003

8.4%

Protiviti

130,812

12.3%

110,234

10.7%


247,697

11.9%

213,159

10.5%

Total

$ 1,063,228

100.0%

$ 1,028,383

100.0%


$2,086,912

100.0%

$ 2,043,827

100.0%

GROSS MARGIN:










Temporary and consultant staffing

$    304,383

36.1%

$   297,056

35.8%


$    601,334

36.1%

$    592,572

35.7%

Permanent placement staffing

90,310

100.0%

89,117

100.0%


173,658

100.0%

171,944

100.0%

Risk consulting and internal audit services

37,415

28.6%

29,130

26.4%


67,406

27.2%

52,870

24.8%

Total

$    432,108

40.6%

$   415,303

40.4%


$    842,398

40.4%

$    817,386

40.0%

OPERATING INCOME:










Temporary and consultant staffing

$      76,581

9.1%

$     51,668

6.2%


$    149,761

9.0%

$    120,822

7.3%

Permanent placement staffing

15,477

17.1%

18,358

20.6%


28,062

16.2%

31,624

18.4%

Risk consulting and internal audit services

8,736

6.7%

2,013

1.8%


12,476

5.0%

(342)

-0.2%

Total

$    100,794

9.5%

$     72,039

7.0%


$    190,299

9.1%

$    152,104

7.4%

SELECTED CASH FLOW INFORMATION:










Amortization of intangible assets

$            434


$             52



$            867


$              87


Depreciation expense

$       11,579


$     12,034



$      23,326


$      24,280


Capital expenditures

$       11,022


$     13,839



$      19,104


$      24,211


Open market repurchases of

  common stock (shares)

1,190


1,486



2,026


2,503


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




June 30,


2013

2012


(Unaudited)




SELECTED BALANCE SHEET INFORMATION:



        Cash and cash equivalents

$     246,971

$     258,578

        Accounts receivable, less allowances

$     557,311

$     531,848

        Total assets

$  1,428,324

$  1,344,399

        Current liabilities

$     534,895

$     496,317

        Notes payable and other indebtedness,

            less current portion

$          1,365

$          1,487

        Total stockholders' equity

$     861,751

$     809,360





 

 

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)


2012

2013


2012

2013

Global

Q2

Q3

Q4

Q1

Q2


Q2

Q3

Q4

Q1

Q2

Accountemps

10.3

4.1

4.2

-2.3

-0.7


12.8

7.1

2.8

0.2

-1.3

OfficeTeam

7.5

3.6

6.4

0.6

2.4


10.3

7.3

5.2

3.1

1.6

RH Technology

13.8

6.3

6.4

4.6

10.2


14.8

8.0

4.6

7.4

9.5

RH Management Resources

10.9

6.9

8.0

-3.1

-1.2


14.9

11.5

6.7

-0.3

-1.5

Temporary and consultant staffing

10.2

4.7

5.6

-0.8

1.6


12.8

7.9

4.2

1.8

0.9

Permanent placement staffing

10.5

3.4

7.5

0.6

1.4


14.7

8.0

6.5

4.0

1.2

Total

10.2

4.6

5.8

-0.6

1.6


13.0

7.9

4.4

2.0

1.0

United States












Temporary and consultant staffing

16.5

10.0

9.1

2.9

4.0


16.9

11.4

7.4

5.5

3.3

Permanent placement staffing

22.0

15.2

16.9

14.9

10.3


22.4

16.7

15.0

17.8

9.6

Total

16.9

10.4

9.6

3.7

4.5


17.3

11.8

7.9

6.3

3.8

International












Temporary and consultant staffing

-5.2

-8.7

-3.8

-10.7

-5.8


2.8

-0.8

-4.4

-8.2

-6.2

Permanent placement staffing

-1.9

-10.2

-4.1

-16.6

-10.8


6.5

-1.9

-3.9

-12.7

-10.1

Total

-4.7

-8.9

-3.8

-11.6

-6.5


3.3

-1.0

-4.4

-8.8

-6.8














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


Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Accountemps






As Reported

10.3

4.1

4.2

-2.3

-0.7

Billing Days Impact

0.4

1.3

-1.6

2.5

-0.6

Currency Impact

2.1

1.7

0.2

0.0

0.0

Same Billing Days and Constant Currency

12.8

7.1

2.8

0.2

-1.3

OfficeTeam






As Reported

7.5

3.6

6.4

0.6

2.4

Billing Days Impact

0.3

1.3

-1.7

2.5

-0.7

Currency Impact

2.5

2.4

0.5

0.0

-0.1

Same Billing Days and Constant Currency

10.3

7.3

5.2

3.1

1.6

Robert Half Technology






As Reported

13.8

6.3

6.4

4.6

10.2

Billing Days Impact

0.3

1.3

-1.7

2.7

-0.8

Currency Impact

0.7

0.4

-0.1

0.1

0.1

Same Billing Days and Constant Currency

14.8

8.0

4.6

7.4

9.5

Robert Half Management Resources






As Reported

10.9

6.9

8.0

-3.1

-1.2

Billing Days Impact

0.3

1.4

-1.7

2.4

-0.8

Currency Impact

3.7

3.2

0.4

0.4

0.5

Same Billing Days and Constant Currency

14.9

11.5

6.7

-0.3

-1.5

Temporary and consultant staffing






As Reported

10.2

4.7

5.6

-0.8

1.6

Billing Days Impact

0.4

1.3

-1.6

2.5

-0.8

Currency Impact

2.2

1.9

0.2

0.1

0.1

Same Billing Days and Constant Currency

12.8

7.9

4.2

1.8

0.9

Permanent placement staffing






As Reported

10.5

3.4

7.5

0.6

1.4

Billing Days Impact

0.3

1.3

-1.7

2.6

-0.7

Currency Impact

3.9

3.3

0.7

0.8

0.5

Same Billing Days and Constant Currency

14.7

8.0

6.5

4.0

1.2

Total






As Reported

10.2

4.6

5.8

-0.6

1.6

Billing Days Impact

0.4

1.3

-1.7

2.5

-0.7

Currency Impact

2.4

2.0

0.3

0.1

0.1

Same Billing Days and Constant Currency

13.0

7.9

4.4

2.0

1.0

 

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


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


Year-Over-Year Staffing Revenue Growth – UNITED STATES


Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Temporary and consultant staffing






As Reported

16.5

10.0

9.1

2.9

4.0

Billing Days Impact

0.4

1.4

-1.7

2.6

-0.7

Currency Impact

Same Billing Days and Constant Currency

16.9

11.4

7.4

5.5

3.3

Permanent placement staffing






As Reported

22.0

15.2

16.9

14.9

10.3

Billing Days Impact

0.4

1.5

-1.9

2.9

-0.7

Currency Impact

Same Billing Days and Constant Currency

22.4

16.7

15.0

17.8

9.6

Total






As Reported

16.9

10.4

9.6

3.7

4.5

Billing Days Impact

0.4

1.4

-1.7

2.6

-0.7

Currency Impact

Same Billing Days and Constant Currency

17.3

11.8

7.9

6.3

3.8




Year-Over-Year Staffing Revenue Growth – INTERNATIONAL


Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Temporary and consultant staffing






As Reported

-5.2

-8.7

-3.8

-10.7

-5.8

Billing Days Impact

0.3

1.2

-1.5

2.2

-0.7

Currency Impact

7.7

6.7

0.9

0.3

0.3

Same Billing Days and Constant Currency

2.8

-0.8

-4.4

-8.2

-6.2

Permanent placement staffing






As Reported

-1.9

-10.2

-4.1

-16.6

-10.8

Billing Days Impact

0.4

1.3

-1.4

2.1

-0.6

Currency Impact

8.0

7.0

1.6

1.8

1.3

Same Billing Days and Constant Currency

6.5

-1.9

-3.9

-12.7

-10.1

Total






As Reported

-4.7

-8.9

-3.8

-11.6

-6.5

Billing Days Impact

0.3

1.1

-1.6

2.3

-0.7

Currency Impact

7.7

6.8

1.0

0.5

0.4

Same Billing Days and Constant Currency

3.3

-1.0

-4.4

-8.8

-6.8

 

SOURCE Robert Half International Inc.



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