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8-K - CURRENT REPORT ON FORM 8-K - ROBERT HALF INTERNATIONAL INC.d8k.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

  Contact: M. Keith Waddell
       Vice Chairman, President and
       Chief Financial Officer
       (650) 234-6000

ROBERT HALF INTERNATIONAL INC. REPORTS REVENUES AND EARNINGS FOR THE FOURTH QUARTER OF 2010

MENLO PARK, California, January 26, 2011 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2010.

For the quarter ended December 31, 2010, net income was $24.8 million or $.17 per share, on revenues of $851.6 million. Net income for the prior year’s fourth quarter was $13.5 million or $.09 per share, on revenues of $737.4 million.

For the year ended December 31, 2010, net income was $66.1 million or $.44 per share, on revenues of $3.18 billion. For the year ended December 31, 2009, net income was $37.3 million or $.24 per share, on revenues of $3.04 billion.

“During the fourth quarter, demand for our professional staffing and consulting services continued to improve across the board,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “Each of our lines of business reported sequential and year-over-year revenue growth in the quarter.”

Messmer added, “Our Robert Half Finance & Accounting permanent placement division once again performed well, with fourth-quarter revenues up 30 percent versus one year ago. Our technology and office administration divisions also reported strong revenue growth, as did international operations. Protiviti reported its best operating results in more than two years.”

Robert Half International management will conduct a conference call today at 5 p.m. EST 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. EST today and ending at 8 p.m. EST on February 2. 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# 36559165. 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 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.

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

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

 

     Quarter
Ended December 31,
    Year
Ended December 31,
 
     2010     2009     2010     2009  
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 851,572      $ 737,423      $ 3,175,093      $ 3,036,547   

Direct costs of services

     524,665        458,940        1,981,060        1,932,868   
                                

Gross margin

     326,907        278,483        1,194,033        1,103,679   

Selling, general and administrative expenses

     283,868        255,972        1,079,033        1,036,899   

Amortization of intangible assets

     49        281        411        1,460   

Interest income

     (258     (209     (579     (1,443
                                

Income before income taxes

     43,248        22,439        115,168        66,763   

Provision for income taxes

     18,458        8,911        49,099        29,500   
                                

Net income

   $ 24,790      $ 13,528      $ 66,069      $ 37,263   
                                

Net income available to common stockholders

   $ 24,144      $ 12,969      $ 63,729      $ 35,067   
                                

Diluted net income per share

   $ .17      $ .09      $ .44      $ .24   

Shares:

        

Basic

     141,795        144,124        142,833        145,912   

Diluted

     143,142        145,161        144,028        146,611   

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     Quarter
Ended December 31,
     Year
Ended December 31,
 
     2010      2009      2010     2009  
     (Unaudited)      (Unaudited)        

REVENUES:

          

Accountemps

   $ 319,066       $ 287,797       $ 1,215,052      $ 1,214,822   

OfficeTeam

     174,336         141,587         629,548        557,049   

Robert Half Technology

     92,064         76,263         336,285        309,854   

Robert Half Management Resources

     103,128         90,596         387,370        389,407   

Robert Half Finance & Accounting

     59,270         45,434         221,219        181,856   

Protiviti

     103,708         95,746         385,619        383,559   
                                  

Total

   $ 851,572       $ 737,423       $ 3,175,093      $ 3,036,547   
                                  

GROSS MARGIN:

          

Temporary and consultant staffing

   $ 237,756       $ 205,597       $ 875,557      $ 842,101   

Permanent placement staffing

     59,250         45,412         221,108        181,679   

Risk consulting and internal audit services

     29,901         27,474         97,368        79,899   
                                  

Total

   $ 326,907       $ 278,483       $ 1,194,033      $ 1,103,679   
                                  

OPERATING INCOME:

          

Temporary and consultant staffing

   $ 35,970       $ 22,212       $ 108,443      $ 104,521   

Permanent placement staffing

     3,754         6         17,502        (6,973

Risk consulting and internal audit services

     3,315         293         (10,945     (30,768
                                  

Total

   $ 43,039       $ 22,511       $ 115,000      $ 66,780   
                                  

SELECTED CASH FLOW INFORMATION:

          

Amortization of intangible assets

   $ 49       $ 281       $ 411      $ 1,460   

Depreciation expense

   $ 13,177       $ 15,560       $ 55,547      $ 63,806   

Capital expenditures

   $ 13,039       $ 10,248       $ 35,088      $ 41,248   

Open market repurchases of common stock (shares)

     717         2,004         3,678        4,724   

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,  
     2010      2009  
     (Unaudited)         

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 315,137       $ 365,794   

Accounts receivable, less allowances

   $ 423,175       $ 362,392   

Total assets

   $ 1,273,984       $ 1,283,535   

Current liabilities

   $ 408,460       $ 366,968   

Notes payable and other indebtedness, less current portion

   $ 1,656       $ 1,779   

Total stockholders’ equity

   $ 834,371       $ 899,810   

 

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