Robert Half International Inc. Reports Revenues and Earnings for the Third Quarter of 2008



    MENLO PARK, Calif., Oct. 22 /CNW/ -- Robert Half International Inc.
(NYSE:   RHI) today reported revenues and earnings for the third quarter ended
September 30, 2008.
    For the quarter ended September 30, 2008, net income was $65.8 million or
$.43 per share, on revenues of $1.16 billion.  Net income for the prior year's
third quarter was $74.0 million or $.46 per share, on revenues of $1.18
billion.
    For the nine months ended September 30, 2008, net income was $211.2
million or $1.37 per share, on revenues of $3.61 billion.  For the nine months
ended September 30, 2007, net income was $217.4 million or $1.32 per share, on
revenues of $3.43 billion.
    Harold M. Messmer, Jr., chairman and chief executive officer of Robert
Half International Inc., said: "Our third-quarter results clearly were
impacted by the turmoil in the global financial markets.  Revenues were down 2
percent from the third quarter of last year and income per share declined 6
percent during this period.  Clients became increasingly cautious with their
hiring actions as the quarter progressed."
    Messmer pointed out that the quarter was not without its bright spots.
"Revenues from our international staffing operations, which make up 30 percent
of total staffing revenue, grew 15 percent year over year on a constant-
currency basis," he said.  "Our technology division also reported positive
year-over-year revenue growth."
    Messmer noted that the company's return on equity was 26 percent for the
third quarter and has averaged 26 percent for the past five years.
    Robert Half International management will conduct a conference call today
at 5 p.m. EDT following the release.  The dial-in number is 800-862-9098
(+1-785-424-1051 outside the United States) and the passcode is "Robert Half
International."  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
October 29.  The dial-in number for the replay is 800-283-8217
(+1-402-220-0868 outside the United States).  The conference call also will be
archived in audio format on the company's website at http://www.rhi.com.
    Founded in 1948, Robert Half International Inc. is the world's first and
largest specialized staffing firm.  It also is the parent company of
Protiviti(R), a global consulting and internal audit firm composed of experts
in risk and advisory services.  Robert Half's specialized staffing divisions
include Accountemps(R), Robert Half(R) Finance & Accounting and Robert Half(R)
Management Resources, for temporary, full-time and project professionals,
respectively, in the fields of accounting and finance; OfficeTeam(R), for
highly skilled temporary administrative support personnel; Robert Half(R)
Technology, for information technology professionals; Robert Half(R) Legal,
for legal personnel; and The Creative Group(R), 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: 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;
whether governments will impose additional regulations or licensing
requirements on personnel services businesses in particular or on
employer/employee relationships in general; whether there will be ongoing
demand for Sarbanes-Oxley or other regulatory compliance services; and
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.
    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 http://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,
                           2008          2007         2008          2007
                               (Unaudited)                (Unaudited)
    Net service
     revenues           $1,160,086   $1,179,045     $3,610,717   $3,425,598
    Direct costs of
     services              676,513      678,252      2,099,532    1,971,391
    

    
    Gross margin           483,573      500,793      1,511,185    1,454,207
    

    
    Selling, general and
     administrative
     expenses              374,120      381,031      1,161,944    1,104,046
    Amortization of
     intangible assets         618          748          1,877        1,840
    Interest income         (1,318)      (3,125)        (4,838)     (10,215)
    

    
    Income before income
     taxes                 110,153      122,139        352,202      358,536
    Provision for income
     taxes                  44,332       48,176        141,029      141,140
    

    
    Net income             $65,821      $73,963       $211,173     $217,396
    

    
    Diluted net income
     per share                $.43         $.46          $1.37        $1.32
    

    
    Shares:
      Basic                150,839      158,480        152,754      161,014
      Diluted              152,786      161,903        154,561      165,166
    



    
               ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
                      SUPPLEMENTAL FINANCIAL INFORMATION
                                (in thousands)
    

    
                                 Quarter                  Nine Months
                            Ended September 30,        Ended September 30,
                            2008          2007         2008          2007
                                (Unaudited)                (Unaudited)
    REVENUES:
      Accountemps         $434,660     $443,719     $1,361,233   $1,291,766
      OfficeTeam           209,112      215,163        647,677      638,532
      Robert Half
       Technology          112,299      110,174        336,117      314,245
      Robert Half
       Management
       Resources           156,097      156,637        491,081      453,348
      Robert Half Finance
       & Accounting        108,457      112,791        351,921      326,500
      Protiviti            139,461      140,561        422,688      401,207
      Total             $1,160,086   $1,179,045     $3,610,717   $3,425,598
    

    
    GROSS MARGIN:
      Temporary and
       consultant
       staffing           $334,389     $345,540     $1,038,985   $1,001,652
      Permanent placement
       staffing            108,412      112,786        351,829      326,495
      Risk consulting and
       internal audit
       services             40,772       42,467        120,371      126,060
      Total               $483,573     $500,793     $1,511,185   $1,454,207
    

    
    OPERATING INCOME:
      Temporary and
       consultant
       staffing            $90,148      $95,511       $285,542     $273,968
      Permanent placement
       staffing             15,317       20,262         57,893       64,202
      Risk consulting and
       internal audit
       services              3,988        3,989          5,806       11,991
      Total               $109,453     $119,762       $349,241     $350,161
    

    
    SELECTED CASH FLOW INFORMATION:
      Amortization of
       intangible assets      $618         $748         $1,877       $1,840
      Depreciation
       expense             $17,981      $17,835        $53,885      $51,085
      Capital
       expenditures        $16,650      $17,209        $55,487      $63,592
      Open market
       repurchases of
       common stock (shares)   863        3,502          5,358        9,161
    



    
               ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
                      SUPPLEMENTAL FINANCIAL INFORMATION
                                (in thousands)
    

    
                                                         September 30,
                                                      2008           2007
                                                          (Unaudited)
    SELECTED BALANCE SHEET INFORMATION:
      Cash and cash equivalents                     $373,692       $328,657
      Accounts receivable, less allowances          $586,762       $628,254
      Total assets                                $1,523,950     $1,487,523
      Current liabilities                           $467,495       $488,522
      Notes payable and other indebtedness, less
       current portion                                $3,541         $3,748
      Total stockholders' equity                  $1,039,050       $983,242

    




For further information:

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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Robert Half International Inc.

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