Robert Half Reports Second-Quarter Financial Results

MENLO PARK, Calif., July 23, 2015 /CNW/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2015. 

For the quarter ended June 30, 2015, net income was $89.7 million, or $.67 per share, on revenues of $1.27 billion.  Net income for the prior year's second quarter was $75.1 million, or $.55 per share, on revenues of $1.16 billion

For the six months ended June 30, 2015, net income was $167.6 million, or $1.25 per share, on revenues of $2.48 billion.  For the six months ended June 30, 2014, net income was $136.7 million, or $1.01 per share, on revenues of $2.25 billion.   

"We reached the half-year mark with all-time high quarterly results, led by Protiviti and Robert Half Technology," said Harold M. Messmer, Jr., chairman and CEO of Robert Half.  "Continued strong demand for our staffing and consulting services contributed to a record quarter.  Overall, revenues grew by 9 percent over the prior year on a reported basis, or 13 percent adjusted for currency. Protiviti again reported excellent results, with currency-adjusted revenues up 23 percent from the previous year.  Our staffing divisions also performed well, with revenues up 12 percent year over year adjusted for currency.  As with the first quarter, growth rates were best in our U.S. operations, but we also saw nice growth internationally." 

Added Messmer, "This was Robert Half's 21st straight quarter of double-digit net income and earnings per share percentage growth on a year-over-year basis. Unlevered return on equity was 36 percent."

Robert Half management will conduct a conference call today at 5 p.m. EDT.  The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center).  Simply click on the Quarterly Conference Calls link.  The dial-in number to listen to today's conference call is 877-814-0475 (+1-706-643-9224 outside the United States).  The password 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 August 23.  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# 73838336.  The conference call also will be archived in audio format on the company's website at www.roberthalf.com.

Founded in 1948, Robert Half is the world's first and largest specialized staffing firm and a recognized leader in professional consulting and staffing 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 administrative support professionals; Robert Half® Technology, for project and full-time technology professionals; Robert Half® Legal, for project and full-time staffing of lawyers, paralegals and legal support personnel; and The Creative Group®, for interactive, design, marketing, advertising and public relations professionals.  Robert Half also is the parent company of Protiviti®, a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. 

Robert Half has staffing and consulting operations in more than 400 locations worldwide. 

Certain information contained in this press release and its attachments 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 healthcare 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.roberthalf.com/investor-center.

ATTACHED:

Summary of Operations


Supplemental Financial Information


Non-GAAP Financial Measures

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)



  Quarter


Six Months


    Ended June 30,


Ended June 30,


2015

2014


2015

2014

Net service revenues

   (Unaudited)


(Unaudited)

$ 1,272,058

$ 1,164,914


$ 2,477,621

$ 2,249,256







Direct costs of services

741,556

686,470


1,453,032

1,332,317

Gross margin

530,502

478,444


1,024,589

916,939

Selling, general and administrative expenses

381,355

354,791


747,340

691,177

Amortization of intangible assets

224


557

Interest income

(88)

(224)


(160)

(462)

Income before income taxes

149,235

123,653


277,409

225,667

Provision for income taxes

59,529

48,513


109,781

88,976

Net income

$     89,706

$     75,140


$    167,628

$    136,691

Diluted net income per share

$           .67

$           .55


$          1.25

$          1.01

Shares: 






     Basic

132,499

134,699


132,786

135,014

     Diluted

133,553

135,708


133,918

135,932







 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)



Quarter

Ended June 30,


Six Months

Ended June 30,



2015

2014


2015

2014



(Unaudited)


(Unaudited)


REVENUES:











Accountemps

$  429,533

33.8%

$    402,996

34.6%


$   843,375

34.0%

$   786,020

34.9%

OfficeTeam

242,102

19.0%

226,505

19.4%


473,195

19.1%

437,565

19.5%

Robert Half Technology

165,618

13.0%

141,988

12.2%


319,362

12.9%

274,293

12.2%

Robert Half Management Resources

142,349

11.2%

139,549

12.0%


287,188

11.6%

270,730

12.0%

Robert Half Finance & Accounting

110,583

8.7%

102,827

8.8%


208,996

8.4%

195,452

8.7%

Protiviti

181,873

14.3%

151,049

13.0%


345,505

14.0%

285,196

12.7%

Total

$1,272,058

100.0%

$1,164,914

100.0%


$2,477,621

100.0%

$2,249,256

100.0%

GROSS MARGIN:










Temporary and consultant staffing

$  365,804

37.3%

$   332,733

36.5%


$   714,562

37.2%

$   641,923

36.3%

Permanent placement staffing

110,377

99.8%

102,781

100.0%


208,616

99.8%

195,383

100.0%

Risk consulting and internal audit services

54,321

29.9%

42,930

28.4%


101,411

29.4%

79,633

27.9%

Total

$  530,502

41.7%

$   478,444

41.1%


$1,024,589

41.4%

$   916,939

40.8%

OPERATING INCOME:










Temporary and consultant staffing

$   104,612

10.7%

$     88,756

9.7%


$   197,413

10.3%

$  166,241

9.4%

Permanent placement staffing

24,052

21.8%

22,448

21.8%


43,083

20.6%

39,723

20.3%

Risk consulting and internal audit services

20,483

11.3%

12,449

8.2%


36,753

10.6%

19,798

6.9%

Total

$   149,147

11.7%

$   123,653

10.6%


$   277,249

11.2%

$  225,762

10.0%

SELECTED CASH FLOW INFORMATION:










Amortization of intangible assets

$              –


$         224



$             –


$         557


Depreciation expense

$     13,562


$    11,863



$    26,568


$    24,063


Capital expenditures

$     16,177


$    10,642



$    29,523


$    23,085


Open market repurchases of common stock (shares)

900


481



1,381


1,306












 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)



  June 30,


2015

2014


(Unaudited)




SELECTED BALANCE SHEET INFORMATION:



        Cash and cash equivalents

$    313,131

$   307,778

        Accounts receivable, less allowances

$    687,029

$   617,200

        Total assets

$ 1,735,170

$1,588,445

        Current liabilities

$    675,769

$   580,890

        Notes payable and other indebtedness, less current portion

$        1,085

$       1,231

        Total stockholders' equity

$ 1,014,675

$   975,561




 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES

The financial results of Robert Half International Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission ("SEC").  To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with revenue growth rates derived from non-GAAP revenue amounts.

Variations in the Company's financial results include the impact of changes in foreign currency exchange rates and billing days.  The Company provides "same billing days and constant currency" revenue growth calculations to remove the impact of these items.  These calculations show the year-over-year revenue growth rates for the Company's lines of business on both a reported basis and also on a same-day, constant-currency basis for global, U.S. and international operations.  This information is presented for each of the six most recent quarters.  The Company has provided this data because management believes it better reflects the Company's actual revenue growth rates and aids in evaluating revenue trends over time.  The Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days and constant currency exchange rates.

The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently.  The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual revenue growth derived from revenue amounts presented in accordance with GAAP.  The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results.  A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATES (%) (UNAUDITED):


Year-Over-Year Growth Rates

(As Reported)


Non-GAAP Year-Over-Year Growth Rates

(Same Billing Days and Constant Currency)


2014

2015


2014

2015

Global

Q1

Q2

Q3

Q4

Q1

Q2


Q1

Q2

Q3

Q4

Q1

Q2

Accountemps

1.7

6.5

10.1

9.6

8.0

6.6


1.4

6.5

9.8

11.6

12.2

10.1

OfficeTeam

4.7

9.1

14.1

12.6

9.5

6.9


4.0

9.0

14.0

14.7

14.1

10.8

RH Technology

9.3

7.8

11.0

11.4

16.2

16.6


9.5

8.5

10.9

12.7

19.0

18.8

RH Management Resources

5.6

12.4

18.9

14.1

10.4

2.0


5.3

12.2

18.4

17.3

17.3

7.9

Temporary and consultant staffing

4.1

8.2

12.5

11.3

10.0

7.5


3.8

8.3

12.3

13.4

14.5

11.3

Permanent placement staffing

11.1

13.8

16.0

12.8

6.2

7.5


11.6

14.2

15.7

15.7

11.9

13.0

  Total staffing

4.8

8.7

12.9

11.5

9.7

7.5


4.5

8.9

12.6

13.6

14.2

11.5

Protiviti

14.8

15.5

20.7

20.9

22.0

20.4


14.1

14.4

18.3

22.5

26.6

23.4

Total

5.9

9.6

13.9

12.7

11.2

9.2


5.7

9.6

13.4

14.9

15.9

13.1















United States














Temporary and consultant staffing

5.9

9.3

13.2

13.8

14.8

12.4


5.4

9.8

13.0

14.0

15.6

12.4

Permanent placement staffing

12.6

15.8

21.8

20.8

15.6

18.7


12.1

16.3

21.6

21.0

16.4

18.7

  Total staffing

6.4

9.8

13.9

14.3

14.8

12.9


5.9

10.3

13.7

14.6

15.7

12.9

Protiviti

19.0

19.0

22.0

26.9

26.2

24.3


18.0

18.4

19.9

27.1

27.9

24.1

Total

7.9

11.0

15.0

16.0

16.3

14.5


7.5

11.4

14.6

16.4

17.5

14.5

 International














Temporary and consultant staffing

-1.2

4.6

10.4

3.1

-6.0

-9.3


-1.0

3.3

9.9

11.4

10.6

7.7

Permanent placement staffing

8.6

10.6

6.3

-0.6

-9.8

-11.9


10.8

10.7

5.6

6.8

4.0

3.1

  Total staffing

0.1

5.4

9.8

2.6

-6.6

-9.7


0.6

4.4

9.3

10.8

9.6

7.0

Protiviti

0.4

2.4

14.6

-1.2

4.8

4.0


0.8

-0.2

11.0

5.4

21.3

20.4

Total

0.1

5.1

10.3

2.1

-5.4

-8.2


0.6

3.9

9.5

10.1

11.0

8.5






























 

The non-GAAP financial measures included in the table above adjust for the following items:

Foreign Currency Translation.  The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates.  In order to calculate "Constant Currency" revenue growth rates, as-reported amounts are retranslated using foreign exchange rates from the prior year's comparable period.

Billing Days.  The "As Reported" revenue growth rates are based upon reported revenues.  Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all lines of business.  In order to remove the fluctuations caused by comparable periods having different billing days, the company calculates "same billing day" revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period, to arrive at a "per billing day" amount.  The "same billing day" growth rates are then calculated based upon the "per billing day" amounts.

The term "same billing days and constant currency" means that the impact of different billing days has been removed from constant currency calculation.  A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein on Pages 10-12.

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – GLOBAL



Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015


Accountemps








    As Reported

1.7

6.5

10.1

9.6

8.0

6.6


    Billing Days Impact

-0.5

0.4

-0.1

0.3

0.9

-0.1


    Currency Impact

0.2

-0.4

-0.2

1.7

3.3

3.6


    Same Billing Days and Constant Currency

1.4

6.5

9.8

11.6

12.2

10.1


OfficeTeam








    As Reported

4.7

9.1

14.1

12.6

9.5

6.9


    Billing Days Impact

-0.5

0.5

-0.2

0.2

0.8

-0.1


    Currency Impact

-0.2

-0.6

0.1

1.9

3.8

4.0


    Same Billing Days and Constant Currency

4.0

9.0

14.0

14.7

14.1

10.8


Robert Half Technology








    As Reported

9.3

7.8

11.0

11.4

16.2

16.6


    Billing Days Impact

-0.5

0.5

-0.2

0.3

0.9

0.0


    Currency Impact

0.7

0.2

0.1

1.0

1.9

2.2


    Same Billing Days and Constant Currency

9.5

8.5

10.9

12.7

19.0

18.8


Robert Half Management Resources








    As Reported

5.6

12.4

18.9

14.1

10.4

2.0


    Billing Days Impact

-0.4

0.6

-0.2

0.2

0.9

0.0


    Currency Impact

0.1

-0.8

-0.3

3.0

6.0

5.9


    Same Billing Days and Constant Currency

5.3

12.2

18.4

17.3

17.3

7.9


Temporary and consultant staffing








    As Reported

4.1

8.2

12.5

11.3

10.0

7.5


    Billing Days Impact

-0.5

0.5

-0.1

0.3

0.9

0.0


    Currency Impact

0.2

-0.4

-0.1

1.8

3.6

3.8


    Same Billing Days and Constant Currency

3.8

8.3

12.3

13.4

14.5

11.3


Permanent placement staffing








    As Reported

11.1

13.8

16.0

12.8

6.2

7.5


    Billing Days Impact

-0.5

0.6

-0.1

0.2

0.9

0.0


    Currency Impact

1.0

-0.2

-0.2

2.7

4.8

5.5


    Same Billing Days and Constant Currency

11.6

14.2

15.7

15.7

11.9

13.0


Total staffing








    As Reported

4.8

8.7

12.9

11.5

9.7

7.5


    Billing Days Impact

-0.5

0.6

-0.2

0.2

0.8

0.0


    Currency Impact

0.2

-0.4

-0.1

1.9

3.7

4.0


    Same Billing Days and Constant Currency

4.5

8.9

12.6

13.6

14.2

11.5


Protiviti







    As Reported

14.8

15.5

20.7

20.9

22.0

20.4

    Billing Days Impact

-1.0

-0.7

-2.1

0.2

1.6

-0.1

    Currency Impact

0.3

-0.4

-0.3

1.4

3.0

3.1

    Same Billing Days and Constant Currency

14.1

14.4

18.3

22.5

26.6

23.4

Total







    As Reported

5.9

9.6

13.9

12.7

11.2

9.2


    Billing Days Impact

-0.4

0.4

-0.4

0.3

1.1

0.0


    Currency Impact

0.2

-0.4

-0.1

1.9

3.6

3.9


    Same Billing Days and Constant Currency

5.7

9.6

13.4

14.9

15.9

13.1



 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – UNITED STATES



Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015


Temporary and consultant staffing


As Reported

5.9

9.3

13.2

13.8

14.8

12.4


Billing Days Impact

-0.5

0.5

-0.2

0.2

0.8

0.0


Currency Impact


Same Billing Days and Constant Currency

5.4

9.8

13.0

14.0

15.6

12.4


Permanent placement staffing








As Reported

12.6

15.8

21.8

20.8

15.6

18.7


Billing Days Impact

-0.5

0.5

-0.2

0.2

0.8

0.0


Currency Impact


Same Billing Days and Constant Currency

12.1

16.3

21.6

21.0

16.4

18.7


Total staffing








As Reported

6.4

9.8

13.9

14.3

14.8

12.9


Billing Days Impact

-0.5

0.5

-0.2

0.3

0.9

0.0


Currency Impact


Same Billing Days and Constant Currency

5.9

10.3

13.7

14.6

15.7

12.9


Protiviti








As Reported

19.0

19.0

22.0

26.9

26.2

24.3


Billing Days Impact

-1.0

-0.6

-2.1

0.2

1.7

-0.2


Currency Impact


Same Billing Days and Constant Currency

18.0

18.4

19.9

27.1

27.9

24.1


Total








As Reported

7.9

11.0

15.0

16.0

16.3

14.5


Billing Days Impact

-0.4

0.4

-0.4

0.4

1.2

0.0


Currency Impact


Same Billing Days and Constant Currency

7.5

11.4

14.6

16.4

17.5

14.5
















 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – INTERNATIONAL



Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Temporary and consultant staffing







As Reported

-1.2

4.6

10.4

3.1

-6.0

-9.3

Billing Days Impact

-0.4

0.4

-0.2

0.2

0.8

0.0

Currency Impact

0.6

-1.7

-0.3

8.1

15.8

17.0

Same Billing Days and Constant Currency

-1.0

3.3

9.9

11.4

10.6

7.7

Permanent placement staffing







As Reported

8.6

10.6

6.3

-0.6

-9.8

-11.9

Billing Days Impact

-0.5

0.5

-0.2

0.2

0.7

0.0

Currency Impact

2.7

-0.4

-0.5

7.2

13.1

15.0

Same Billing Days and Constant Currency

10.8

10.7

5.6

6.8

4.0

3.1

Total staffing







As Reported

0.1

5.4

9.8

2.6

-6.6

-9.7

Billing Days Impact

-0.4

0.5

-0.2

0.3

0.8

0.0

Currency Impact

0.9

-1.5

-0.3

7.9

15.4

16.7

Same Billing Days and Constant Currency

0.6

4.4

9.3

10.8

9.6

7.0

Protiviti







As Reported

0.4

2.4

14.6

-1.2

4.8

4.0

Billing Days Impact

-0.8

-0.6

-2.0

0.1

1.6

-0.1

Currency Impact

1.2

-2.0

-1.6

6.5

14.9

16.5

Same Billing Days and Constant Currency

0.8

-0.2

11.0

5.4

21.3

20.4

Total







As Reported

0.1

5.1

10.3

2.1

-5.4

-8.2

Billing Days Impact

-0.5

0.4

-0.3

0.2

1.1

0.0

Currency Impact

1.0

-1.6

-0.5

7.8

15.3

16.7

Same Billing Days and Constant Currency

0.6

3.9

9.5

10.1

11.0

8.5

 

 

SOURCE Robert Half

For further information: M. Keith Waddell, Vice Chairman, President and Chief Financial Officer, (650) 234-6000, http://www.roberthalf.com


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