Robert Half Reports Fourth-Quarter And Year-End Financial Results

Feb 02, 2016, 16:15 ET from Robert Half

Annual Earnings Per Share at All-Time High

MENLO PARK, Calif., Feb. 2, 2016 /PRNewswire/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter and year ended December 31, 2015.

For the quarter ended December 31, 2015, net income was $93 million, or $.71 per share, on revenues of $1.30 billion. Net income for the prior year's fourth quarter was $84 million, or $.62 per share, on revenues of $1.22 billion.

For the year ended December 31, 2015, net income was $358 million, or $2.69 per share, on revenues of $5.09 billion. For the year ended December 31, 2014, net income was $306 million, or $2.26 per share, on revenues of $4.70 billion.

Harold M. Messmer, Jr., chairman and CEO of Robert Half, said, "Demand for our professional staffing and consulting services remained strong in the fourth quarter, fueled by a healthy U.S. job market and low unemployment in numerous professional occupations, as well as a more positive economic backdrop in many of our non-U.S. markets. We saw year-over-year revenue growth across the board in our staffing and consulting operations, both in the United States and abroad."  

Messmer added, "This was the company's 23rd straight quarter of double-digit net income and earnings-per-share percentage growth on a year-over-year basis. Unlevered return on equity was 37 percent."

Robert Half management will conduct a conference call today at 5 p.m. EST. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today's conference call is 877-814-0475 (+1-706-643-9224 outside the United States). The password 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 March 2. 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# 20651512. The conference call also will be archived in audio format on the company's website at www.roberthalf.com/investor-center.

Founded in 1948, Robert Half is the world's first and largest specialized staffing firm and a recognized leader in professional consulting and staffing 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 administrative support professionals; Robert Half® Technology, for project and full-time technology professionals; Robert Half® Legal, for project and full-time staffing of lawyers, paralegals and legal support personnel; and The Creative Group®, for interactive, design, marketing, advertising and public relations professionals. Robert Half also is the parent company of Protiviti®, a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit.

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

Certain information contained in this press release and its attachments 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.roberthalf.com/investor-center.

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 Ended December 31,


Year Ended December 31,



2015


2014


2015


2014



(Unaudited)


(Unaudited)












Net service revenues


$

1,304,594



$

1,221,450



$

5,094,933



$

4,695,014


Direct costs of services


764,513



720,693



2,980,462



2,772,098











Gross margin


540,081



500,757



2,114,471



1,922,916











Selling, general and administrative expenses


395,724



367,590



1,533,799



1,425,734


Amortization of intangible assets


192





192



557


Interest income, net


(150)



(154)



(550)



(724)











Income before income taxes


144,315



133,321



581,030



497,349


Provision for income taxes


50,872



49,268



223,234



191,421











Net income


$

93,443



$

84,053



$

357,796



$

305,928











Diluted net income per share


$

.71



$

.62



$

2.69



$

2.26











Shares:









Basic


130,172



133,372



131,749



134,358


Diluted


131,430



134,956



132,930



135,541


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)


































Quarter Ended December 31,


Year Ended December 31,



2015


2014


2015


2014



(Unaudited)


(Unaudited)





REVENUES:

















Accountemps


$

438,383



33.6

%


$

414,176



33.9

%


$

1,715,910



33.7

%


$

1,616,609



34.5

%

OfficeTeam


251,614



19.3

%


241,768



19.8

%


973,896



19.1

%


917,056



19.5

%

Robert Half Technology


167,551



12.8

%


152,901



12.5

%


657,124



12.9

%


577,360



12.3

%

Robert Half Management Resources


150,353



11.6

%


144,603



11.9

%


583,913



11.5

%


565,256



12.0

%

Robert Half Finance & Accounting


101,667



7.8

%


96,718



7.9

%


421,411



8.2

%


394,515



8.4

%

Protiviti


195,026



14.9

%


171,284



14.0

%


742,679



14.6

%


624,218



13.3

%

Total


$

1,304,594



100.0

%


$

1,221,450



100.0

%


$

5,094,933



100.0

%


$

4,695,014



100.0

%


















GROSS MARGIN:

















Temporary and consultant staffing


$

376,083



37.3

%


$

351,422



36.9

%


$

1,463,407



37.2

%


$

1,345,136



36.6

%

Permanent placement staffing


101,521



99.9

%


96,705



100.0

%


420,747



99.8

%


394,402



100.0

%

Risk consulting and internal audit services


62,477



32.0

%


52,630



30.7

%


230,317



31.0

%


183,378



29.4

%

Total


$

540,081



41.4

%


$

500,757



41.0

%


$

2,114,471



41.5

%


$

1,922,916



41.0

%


















OPERATING INCOME:

















Temporary and consultant staffing


$

99,404



9.9

%


$

94,632



9.9

%


$

399,808



10.2

%


$

358,533



9.8

%

Permanent placement staffing


17,559



17.3

%


17,230



17.8

%


85,019



20.2

%


78,333



19.9

%

Risk consulting and internal audit services


27,394



14.0

%


21,305



12.4

%


95,845



12.9

%


60,316



9.7

%

Total


$

144,357



11.1

%


$

133,167



10.9

%


$

580,672



11.4

%


$

497,182



10.6

%


















SELECTED CASH FLOW INFORMATION:

















Amortization of intangible assets


$

192





$





$

192





$

557




Depreciation expense


$

13,786





$

12,954





$

53,273





$

49,124




Capital expenditures


$

26,781





$

26,623





$

75,057





$

62,830




Open market repurchases of common stock (shares)


1,411





792





4,343





3,336




 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)














December 31,



2015


2014



(Unaudited)



SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$

217,733



$

287,119


Accounts receivable, less allowances


$

704,640



$

657,676


Total assets


$

1,702,960



$

1,647,267


Current liabilities


$

655,549



$

623,362


Notes payable and other indebtedness, less current portion


$

1,007



$

1,159


Total stockholders' equity


$

1,003,781



$

979,858


 

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 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 six 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


REVENUE GROWTH RATES (%) (UNAUDITED):




Year-Over-Year Growth Rates
(As Reported)


Non-GAAP Year-Over-Year Growth Rates
(Same Billing Days and Constant Currency)



2014


2015


2014


2015



Q3


Q4


Q1


Q2


Q3


Q4


Q3


Q4


Q1


Q2


Q3


Q4

Global

























Accountemps


10.1


9.6


8.0


6.6


4.3


5.8


9.8


11.6


12.2


10.1


7.6


7.5

OfficeTeam


14.1


12.6


9.5


6.9


4.8


4.1


14.0


14.7


14.1


10.8


8.3


5.8

Robert Half Technology


11.0


11.4


16.2


16.6


13.3


9.6


10.9


12.7


19.0


18.8


15.4


10.2

Robert Half Management Resources


18.9


14.1


10.4


2.0


-2.4


4.0


18.4


17.3


17.3


7.9


2.9


7.1

Temporary and consultant staffing


12.5


11.3


10.0


7.5


4.8


5.7


12.3


13.4


14.5


11.3


8.3


7.4

Permanent placement staffing


16.0


12.8


6.2


7.5


8.2


5.1


15.7


15.7


11.9


13.0


13.6


8.2

Total staffing


12.9


11.5


9.7


7.5


5.1


5.7


12.6


13.6


14.2


11.5


8.8


7.5

Protiviti


20.7


20.9


22.0


20.4


20.5


13.9


18.3


22.5


26.6


23.4


23.0


15.4

Total


13.9


12.7


11.2


9.2


7.2


6.8


13.4


14.9


15.9


13.1


10.9


8.7


























United States

















Temporary and consultant staffing


13.2


13.8


14.8


12.4


9.9


9.2


13.0


14.0


15.6


12.4


9.8


8.2

Permanent placement staffing


21.8


20.8


15.6


18.7


16.2


11.5


21.6


21.0


16.4


18.6


16.1


10.5

Total staffing


13.9


14.3


14.8


12.9


10.4


9.4


13.7


14.6


15.7


12.9


10.3


8.4

Protiviti


22.0


26.9


26.2


24.3


24.6


15.5


19.9


27.1


27.9


24.1


24.4


15.1

Total


15.0


16.0


16.3


14.5


12.5


10.3


14.6


16.4


17.5


14.5


12.6


9.5


























International

















Temporary and consultant staffing


10.4


3.1


-6.0


-9.3


-12.8


-7.2


9.9


11.4


10.6


7.7


3.1


4.4

Permanent placement staffing


6.3


-0.6


-9.8


-11.9


-7.3


-7.8


5.6


6.8


4.0


3.1


8.9


3.5

Total staffing


9.8


2.6


-6.6


-9.7


-12.1


-7.3


9.3


10.8


9.6


7.0


3.9


4.3

Protiviti


14.6


-1.2


4.8


4.0


1.2


6.0


11.0


5.4


21.3


20.4


16.4


16.9

Total


10.3


2.1


-5.4


-8.2


-10.7


-5.8


9.5


10.1


11.0


8.5


5.3


5.9

 

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 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 8-10.

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – GLOBAL



 Q3 2014


 Q4 2014


 Q1 2015


 Q2 2015


 Q3 2015


 Q4 2015

Accountemps











As Reported


10.1



9.6


8.0


6.6



4.3



5.8


Billing Days Impact


-0.1



0.3


0.9


-0.1



-0.2



-0.9


Currency Impact


-0.2



1.7


3.3


3.6



3.5



2.6


Same Billing Days and Constant Currency


9.8



11.6


12.2


10.1



7.6



7.5


OfficeTeam













As Reported


14.1



12.6


9.5


6.9



4.8



4.1


Billing Days Impact


-0.2



0.2


0.8


-0.1



-0.2



-1.0


Currency Impact


0.1



1.9


3.8


4.0



3.7



2.7


Same Billing Days and Constant Currency


14.0



14.7


14.1


10.8



8.3



5.8


Robert Half Technology













As Reported


11.0



11.4


16.2


16.6



13.3



9.6


Billing Days Impact


-0.2



0.3


0.9


0.0



-0.1



-1.0


Currency Impact


0.1



1.0


1.9


2.2



2.2



1.6


Same Billing Days and Constant Currency


10.9



12.7


19.0


18.8



15.4



10.2


Robert Half Management Resources













As Reported


18.9



14.1


10.4


2.0



-2.4



4.0


Billing Days Impact


-0.2



0.2


0.9


0.0



0.0



-1.0


Currency Impact


-0.3



3.0


6.0


5.9



5.3



4.1


Same Billing Days and Constant Currency


18.4



17.3


17.3


7.9



2.9



7.1


Temporary and consultant staffing













As Reported


12.5



11.3


10.0


7.5



4.8



5.7


Billing Days Impact


-0.1



0.3


0.9


0.0



-0.1



-1.0


Currency Impact


-0.1



1.8


3.6


3.8



3.6



2.7


Same Billing Days and Constant Currency


12.3



13.4


14.5


11.3



8.3



7.4


Permanent placement staffing













As Reported


16.0



12.8


6.2


7.5



8.2



5.1


Billing Days Impact


-0.1



0.2


0.9


0.0



-0.2



-0.9


Currency Impact


-0.2



2.7


4.8


5.5



5.6



4.0


Same Billing Days and Constant Currency


15.7



15.7


11.9


13.0



13.6



8.2


Total staffing













As Reported


12.9



11.5


9.7


7.5



5.1



5.7


Billing Days Impact


-0.2



0.2


0.8


0.0



-0.1



-1.0


Currency Impact


-0.1



1.9


3.7


4.0



3.8



2.8


Same Billing Days and Constant Currency


12.6



13.6


14.2


11.5



8.8



7.5


Protiviti













As Reported


20.7



20.9


22.0


20.4



20.5



13.9


Billing Days Impact


-2.1



0.2


1.6


-0.1



-0.2



-0.4


Currency Impact


-0.3



1.4


3.0


3.1



2.7



1.9


Same Billing Days and Constant Currency


18.3



22.5


26.6


23.4



23.0



15.4


Total













As Reported


13.9



12.7


11.2


9.2



7.2



6.8


Billing Days Impact


-0.4



0.3


1.1


0.0



0.0



-0.8


Currency Impact


-0.1



1.9


3.6


3.9



3.7



2.7


Same Billing Days and Constant Currency


13.4



14.9


15.9


13.1



10.9



8.7


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – UNITED STATES



 Q3 2014


 Q4 2014


 Q1 2015


 Q2 2015


 Q3 2015


 Q4 2015

Temporary and consultant staffing



As Reported


13.2



13.8


14.8


12.4



9.9



9.2


Billing Days Impact


-0.2



0.2


0.8


0.0



-0.1



-1.0


Currency Impact











Same Billing Days and Constant Currency


13.0



14.0


15.6


12.4



9.8



8.2















Permanent placement staffing













As Reported


21.8



20.8


15.6


18.7



16.2



11.5


Billing Days Impact


-0.2



0.2


0.8


0.0



-0.1



-1.0


Currency Impact











Same Billing Days and Constant Currency


21.6



21.0


16.4


18.7



16.1



10.5















Total staffing













As Reported


13.9



14.3


14.8


12.9



10.4



9.4


Billing Days Impact


-0.2



0.3


0.9


0.0



-0.1



-1.0


Currency Impact











Same Billing Days and Constant Currency


13.7



14.6


15.7


12.9



10.3



8.4















Protiviti













As Reported


22.0



26.9


26.2


24.3



24.6



15.5


Billing Days Impact


-2.1



0.2


1.7


-0.2



-0.2



-0.4


Currency Impact











Same Billing Days and Constant Currency


19.9



27.1


27.9


24.1



24.4



15.1















Total













As Reported


15.0



16.0


16.3


14.5



12.5



10.3


Billing Days Impact


-0.4



0.4


1.2


0.0



0.1



-0.8


Currency Impact











Same Billing Days and Constant Currency


14.6



16.4


17.5


14.5



12.6



9.5


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – INTERNATIONAL



 Q3 2014


 Q4 2014


 Q1 2015


 Q2 2015


 Q3 2015


 Q4 2015

Temporary and consultant staffing



As Reported


10.4



3.1



-6.0



-9.3



-12.8



-7.2


Billing Days Impact


-0.2



0.2



0.8



0.0



-0.2



-1.0


Currency Impact


-0.3



8.1



15.8



17.0



16.1



12.6


Same Billing Days and Constant Currency


9.9



11.4



10.6



7.7



3.1



4.4















Permanent placement staffing













As Reported


6.3



-0.6



-9.8



-11.9



-7.3



-7.8


Billing Days Impact


-0.2



0.2



0.7



0.0



-0.1



-1.0


Currency Impact


-0.5



7.2



13.1



15.0



16.3



12.3


Same Billing Days and Constant Currency


5.6



6.8



4.0



3.1



8.9



3.5















Total staffing













As Reported


9.8



2.6



-6.6



-9.7



-12.1



-7.3


Billing Days Impact


-0.2



0.3



0.8



0.0



-0.1



-1.0


Currency Impact


-0.3



7.9



15.4



16.7



16.1



12.6


Same Billing Days and Constant Currency


9.3



10.8



9.6



7.0



3.9



4.3















Protiviti













As Reported


14.6



-1.2



4.8



4.0



1.2



6.0


Billing Days Impact


-2.0



0.1



1.6



-0.1



-0.2



-0.4


Currency Impact


-1.6



6.5



14.9



16.5



15.4



11.3


Same Billing Days and Constant Currency


11.0



5.4



21.3



20.4



16.4



16.9















Total













As Reported


10.3



2.1



-5.4



-8.2



-10.7



-5.8


Billing Days Impact


-0.3



0.2



1.1



0.0



0.0



-0.7


Currency Impact


-0.5



7.8



15.3



16.7



16.0



12.4


Same Billing Days and Constant Currency


9.5



10.1



11.0



8.5



5.3



5.9


 

SOURCE Robert Half



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