Attached files

file filename
8-K - CURRENT REPORT ON FORM 8-K - ROBERT HALF INTERNATIONAL INC.d282496d8k.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

 

   Contact:   

M. Keith Waddell

Vice Chairman, President and

Chief Financial Officer

(650) 234-6000

ROBERT HALF INTERNATIONAL REPORTS FOURTH-QUARTER FINANCIAL RESULTS

Net Income Per Share Up 78 Percent on High Demand for Skilled Talent

MENLO PARK, California, January 26, 2012 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2011.

For the quarter ended December 31, 2011, net income was $42.6 million or $.30 per share, on revenues of $973.5 million. Net income for the prior year’s fourth quarter was $24.8 million or $.17 per share, on revenues of $851.6 million.

For the year ended December 31, 2011, net income was $149.9 million or $1.04 per share, on revenues of $3.78 billion. For the year ended December 31, 2010, net income was $66.1 million or $.44 per share, on revenues of $3.18 billion.

“Our specialized staffing divisions and Protiviti reported solid results in the fourth quarter. This marks the sixth consecutive quarter of double-digit, year-over-year revenue growth for the company,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “Additionally, growth rates in net income and earnings per share have significantly exceeded revenue growth rates during this period. This reflects the ongoing strong demand for skilled talent, particularly in the technology and accounting sectors.”

Robert Half International management will conduct a conference call today at 5 p.m. EST. 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 26. 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# 39930039. 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. 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

 

2


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

 

     Quarter     Year  
     Ended December 31,     Ended December 31,  
     2011     2010     2011     2010  
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 973,473      $ 851,572      $ 3,776,976      $ 3,175,093   

Direct costs of services

     586,151        524,665        2,287,374        1,981,060   
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     387,322        326,907        1,489,602        1,194,033   

Selling, general and administrative expenses

     315,479        283,868        1,240,184        1,079,033   

Amortization of intangible assets

     35        49        153        411   

Interest income

     (353     (258     (951     (579
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     72,161        43,248        250,216        115,168   

Provision for income taxes

     29,537        18,458        100,294        49,099   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 42,624      $ 24,790      $ 149,922      $ 66,069   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income available to common stockholders - diluted

   $ 42,037      $ 24,144      $ 147,772      $ 63,729   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted net income per share

   $ .30      $ .17      $ 1.04      $ .44   

Shares:

        

Basic

     138,581        141,795        140,479        142,833   

Diluted

     140,059        143,142        141,790        144,028   

 

3


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     Quarter      Year  
     Ended December 31,      Ended December 31,  
     2011      2010      2011      2010  
     (Unaudited)      (Unaudited)         

REVENUES:

           

Accountemps

   $ 363,820       $ 319,066       $ 1,405,782       $ 1,215,052   

OfficeTeam

     195,862         174,336         757,146         629,548   

Robert Half Technology

     112,981         92,064         428,482         336,285   

Robert Half Management Resources

     116,563         103,128         459,589         387,370   

Robert Half Finance & Accounting

     74,824         59,270         302,155         221,219   

Protiviti

     109,423         103,708         423,822         385,619   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 973,473       $ 851,572       $ 3,776,976       $ 3,175,093   
  

 

 

    

 

 

    

 

 

    

 

 

 

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 282,412       $ 237,756       $ 1,074,006       $ 875,557   

Permanent placement staffing

     74,756         59,250         301,945         221,108   

Risk consulting and internal audit services

     30,154         29,901         113,651         97,368   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 387,322       $ 326,907       $ 1,489,602       $ 1,194,033   
  

 

 

    

 

 

    

 

 

    

 

 

 

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 63,594       $ 35,970       $ 209,101       $ 108,443   

Permanent placement staffing

     5,879         3,754         35,340         17,502   

Risk consulting and internal audit services

     2,370         3,315         4,977         (10,945
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 71,843       $ 43,039       $ 249,418       $ 115,000   
  

 

 

    

 

 

    

 

 

    

 

 

 

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 35       $ 49       $ 153       $ 411   

Depreciation expense

   $ 12,753       $ 13,177       $ 51,262       $ 55,547   

Capital expenditures

   $ 14,827       $ 13,039       $ 56,535       $ 35,088   

Open market repurchases of common stock (shares)

     286         717         5,308         3,678   

 

4


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,  
     2011      2010  
     (Unaudited)         

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 279,336       $ 315,137   

Accounts receivable, less allowances

   $ 493,327       $ 423,175   

Total assets

   $ 1,311,836       $ 1,273,984   

Current liabilities

   $ 473,001       $ 408,460   

Notes payable and other indebtedness, less current portion

   $ 1,545       $ 1,656   

Total stockholders’ equity

   $ 800,505       $ 834,371   

 

5