Robert Half International Reports Third-Quarter Financial Results
Net Income Per Share More Than Doubles on 20 Percent Increase in Revenues
MENLO PARK, Calif., Oct. 25, 2011 /CNW/ -- Robert Half International Inc.
today reported revenues and earnings for the third quarter ended September 30, 2011.For the quarter ended September 30, 2011, net income was $44.2 million or $.31 per share, on revenues of $984.7 million. Net income for the prior year's third quarter was $20.6 million or $.14 per share, on revenues of $817.3 million.
For the nine months ended September 30, 2011, net income was $107.3 million or $.74 per share, on revenues of $2.80 billion. For the nine months ended September 30, 2010, net income was $41.3 million or $.27 per share, on revenues of $2.32 billion.
'We saw broad-based demand for our professional services throughout the third quarter, resulting in double-digit year-over-year revenue growth rates for the fifth consecutive quarter,' said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. 'All of our divisions performed well, led by our technology staffing division.'
Messmer added, 'We were particularly pleased with the continuing expansion of our gross margins across our temporary staffing divisions.'
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 November 1. 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# 99188941. 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. Forwardlooking 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
Nine Months
Ended September 30,
Ended September 30,
-------------------
-------------------
2011 2010
2011 2010
----
---- -
Net service revenues (Unaudited)
(Unaudited)
$984,668 $817,258
$2,803,503 $2,323,521
Direct costs of
services 592,765 508,118
1,701,223 1,456,395
------- -------
--------- ---------
Gross margin 391,903 309,140 1,102,280 867,126
Selling, general and
administrative 319,817 271,978
924,705 795,165
expenses
Amortization of
intangible assets 39 46
118 362
Interest income (148) (153)
(598) (321)
---- ----
---- ----
Income before income
taxes 72,195 37,269
178,055 71,920
Provision for income
taxes 28,027 16,645
70,757 30,641
------ ------
------ ------
Net income $44,168 $20,624
$107,298 $41,279
======= =======
======== =======
Net income available
to common $43,556 $20,099
$105,740 $39,430
stockholders -diluted ======= =======
======== =======
Diluted net income per
share $.31 $.14
$.74 $.27
Shares:
Basic 139,449 142,230
141,118 143,182
Diluted 140,433 143,000
142,373 144,327
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
Quarter
Nine Months
Ended September 30,
Ended September 30,
-------------------
-------------------
2011 2010
2011 2010
----
---- --
(Unaudited)
(Unaudited)
REVENUES:
Accountemps $366,364 $312,361
$1,041,962 $895,986
OfficeTeam 196,272 163,358
561,284 455,212
Robert Half
Technology 113,842 87,302
315,501 244,221
Robert Half
Management
Resources 118,244 98,157
343,026 284,242
Robert Half
Finance &
Accounting 79,064 57,177
227,331 161,949
Protiviti 110,882 98,903
314,399 281,911
------- ------
------- -------
Total $984,668 $817,258
$2,803,503 $2,323,521
======== ========
========== ==========
GROSS MARGIN:
Temporary and
consultant
staffing $282,441 $225,304
$791,594 $637,801
Permanent
placement
staffing 79,017 57,153
227,189 161,858
Risk consulting
and internal
audit 30,445 26,683
83,497 67,467
services ------ ------
------ ------
Total $391,903 $309,140
$1,102,280 $867,126
======== ========
========== ========
OPERATING INCOME:
Temporary and
consultant
staffing $61,196 $31,957
$145,507 $72,473
Permanent
placement
staffing 7,719 5,092
29,461 13,748
Risk consulting
and internal
audit 3,171 113
2,607 (14,260)
services ----- ---
----- -------
Total $72,086 $37,162
$177,575 $71,961
======= =======
======== =======
SELECTED CASH FLOW
INFORMATION:
Amortization of
intangible assets $39 $46
$118 $362
Depreciation
expense $12,806 $13,460
$38,509 $42,370
Capital
expenditures $13,333 $7,637
$41,708 $22,049
Open market
repurchases of 2,063 475
5,021 2,961
common stock
(shares)
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
September
30,
-------------
2011
2010
----
(Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents $242,726
$311,056
Accounts receivable, less allowances $516,047
$427,770
Total assets $1,308,535
$1,284,232
Current liabilities $483,398
$404,720
Notes payable and other indebtedness, $1,572
$1,688
less current portion
Total stockholders' equity $791,950
$850,338
Robert Half International Inc.
CONTACT: M. Keith Waddell, Vice Chairman, President and Chief Financial
Officer of Robert Half International Inc., 1-650-234-6000 Web Site:
http://www.rhi.com
