Robert Half International Inc. Reports Revenues and Earnings for the Third
Quarter Of 2010
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<p>MENLO PARK, Calif., <span class="xn-chron">Oct. 20</span> /CNW/ -- <span class="xn-person">Robert Half</span> International Inc. (NYSE: RHI) today reported revenues and earnings for the third quarter ended <span class="xn-chron">September 30, 2010</span>.</p>
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<p>For the quarter ended <span class="xn-chron">September 30, 2010</span>, net income was <span class="xn-money">$20.6 million</span> or <span class="xn-money">$.14</span> per share, on revenues of <span class="xn-money">$817.3 million</span>. Net income for the prior year's third quarter was <span class="xn-money">$9.5 million</span> or <span class="xn-money">$.06</span> per share, on revenues of <span class="xn-money">$725.9 million</span>.</p>
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<p>For the nine months ended <span class="xn-chron">September 30, 2010</span>, net income was <span class="xn-money">$41.3 million</span> or <span class="xn-money">$.27</span> per share, on revenues of <span class="xn-money">$2.32 billion</span>. For the nine months ended <span class="xn-chron">September 30, 2009</span>, net income was <span class="xn-money">$23.7 million</span> or <span class="xn-money">$.15</span> per share, on revenues of <span class="xn-money">$2.30 billion</span>.</p>
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<p>"We were pleased to see broad-based increases in demand throughout our operations," said Harold M. Messmer, Jr., chairman and CEO of <span class="xn-person">Robert Half</span> International. "Each of our staffing divisions and Protiviti reported both year-over-year and sequential revenue gains during the third quarter."</p>
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<p><span class="xn-person">Robert Half</span> International management will conduct a conference call today at <span class="xn-chron">5 p.m. EDT</span> following the release. The dial-in number is 877-814-0475 (+1-706-643-9224 outside the <span class="xn-location">United States</span>). A taped recording of this call will be available for replay beginning at approximately <span class="xn-chron">8 p.m. EDT</span> today and ending at <span class="xn-chron">8 p.m. EDT</span> on <span class="xn-chron">October 27</span>. The dial-in number for the replay is 800-642-1687 (+1-706-645-9291 outside the <span class="xn-location">United States</span>). To access the replay, enter conference ID# 15794099. The conference call also will be archived in audio format on the company's website at <a href="http://www.rhi.com">www.rhi.com</a>.</p>
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<p>Founded in 1948, <span class="xn-person">Robert Half</span> 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 business 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 advertising, marketing and web design professionals.</p>
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<p><span class="xn-person">Robert Half</span> International has staffing and consulting operations in more than 400 locations worldwide.</p>
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<p>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.</p>
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<p>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 <span class="xn-location">United States</span> 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.</p>
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<p>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.</p>
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<p>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.</p>
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A copy of this release is available at www.rhi.com.
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ATTACHED: Summary of Operations
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Supplemental Financial Information
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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
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Quarter Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2010 2009 2010 2009
---- ---- ---- ----
Net service
revenues (Unaudited) (Unaudited)
$817,258 $725,912 $2,323,521 $2,299,124
Direct costs of
services 508,118 459,501 1,456,395 1,473,928
------- ------- --------- ---------
Gross margin 309,140 266,411 867,126 825,196
Selling, general
and
administrative
expenses 271,978 248,870 795,165 780,927
Amortization of
intangible
assets 46 281 362 1,179
Interest income (153) (159) (321) (1,234)
---- ---- ---- ------
Income before
income taxes 37,269 17,419 71,920 44,324
Provision for
income taxes 16,645 7,888 30,641 20,589
------ ----- ------ ------
Net income $20,624 $9,531 $41,279 $23,735
======= ====== ======= =======
Net income
available to
common
stockholders $20,099 $8,988 $39,430 $22,098
======= ====== ======= =======
Diluted net
income per share $.14 $.06 $.27 $.15
Shares:
Basic 142,230 146,227 143,182 146,514
Diluted 143,000 147,123 144,327 147,101
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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
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Quarter Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
2010 2009 2010 2009
---- ---- --
(Unaudited) (Unaudited)
REVENUES:
Accountemps $312,361 $286,772 $895,986 $927,025
OfficeTeam 163,358 134,361 455,212 415,462
Robert Half
Technology 87,302 74,567 244,221 233,591
Robert Half
Management
Resources 98,157 90,271 284,242 298,811
Robert Half
Finance &
Accounting 57,177 42,955 161,949 136,422
Protiviti 98,903 96,986 281,911 287,813
------ ------ ------- -------
Total $817,258 $725,912 $2,323,521 $2,299,124
======== ======== ========== ==========
GROSS MARGIN:
Temporary and
consultant
staffing $225,304 $196,496 $637,801 $636,504
Permanent
placement
staffing 57,153 42,906 161,858 136,267
Risk consulting
and internal
audit 26,683 27,009 67,467 52,425
services ------ ------ ------ ------
Total $309,140 $266,411 $867,126 $825,196
======== ======== ======== ========
OPERATING INCOME:
Temporary and
consultant
staffing $31,957 $17,264 $72,473 $82,309
Permanent
placement
staffing 5,092 (781) 13,748 (6,979)
Risk consulting
and internal
audit 113 1,058 (14,260) (31,061)
services --- ----- ------- -------
Total $37,162 $17,541 $71,961 $44,269
======= ======= ======= =======
SELECTED CASH
FLOW
INFORMATION:
Amortization of
intangible
assets $46 $281 $362 $1,179
Depreciation
expense $13,460 $15,458 $42,370 $48,246
Capital
expenditures $7,637 $6,852 $22,049 $31,000
Open market
repurchases of
common stock
(shares) 475 1,204 2,961 2,720
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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
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September 30,
-------------
2010 2009
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(Unaudited)
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SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents $311,056 $407,641
Accounts receivable, less
allowances $427,770 $364,533
Total assets $1,284,232 $1,326,244
Current liabilities $404,720 $362,098
Notes payable and other
indebtedness, $1,688 $1,808
less current portion
Total stockholders' equity $850,338 $947,998
For further information: 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
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