Robert Half Reports Second-Quarter Financial Results

MENLO PARK, Calif., July 26, 2016 /CNW/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2016.

For the quarter ended June 30, 2016, net income was $92 million, or $.71 per share, on revenues of $1.34 billion. Net income for the prior year's second quarter was $90 million, or $.67 per share, on revenues of $1.27 billion.

For the six months ended June 30, 2016, net income was $175 million, or $1.35 per share, on revenues of $2.65 billion. For the six months ended June 30, 2015, net income was $168 million, or $1.25 per share, on revenues of $2.48 billion.

Harold M. Messmer, Jr., chairman and CEO of Robert Half, said: "Our second-quarter results reflect continued solid demand for our professional staffing and consulting services. Our financial staffing divisions and Protiviti reported the strongest year-over-year revenue gains."

Messmer added, "In the second quarter, unlevered return on equity for the company was 35 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 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# 42485084. The conference call also will be archived in audio format on the company's website at www.roberthalf.com/investor-center.

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 Ended June 30,


Six Months Ended June 30,



2016


2015


2016


2015



(Unaudited)


(Unaudited)










Net service revenues


$

1,344,160



$

1,272,058



$

2,646,785



$

2,477,621


Direct costs of services


787,167



741,556



1,557,820



1,453,032











Gross margin


556,993



530,502



1,088,965



1,024,589











Selling, general and administrative expenses


407,496



381,355



805,570



747,340


Amortization of intangible assets


314





602




Interest income, net


(231)



(88)



(412)



(160)











Income before income taxes


149,414



149,235



283,205



277,409


Provision for income taxes


57,798



59,529



108,173



109,781











Net income


$

91,616



$

89,706



$

175,032



$

167,628











Diluted net income per share


$

.71



$

.67



$

1.35



$

1.25











Shares:









Basic


128,586



132,499



128,933



132,786


Diluted


129,329



133,553



129,733



133,918


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
































Quarter Ended June 30,


Six Months Ended June 30,



2016


2015


2016


2015



(Unaudited)


(Unaudited)

REVENUES:

















Accountemps


$

460,242



34.2

%


$

429,533



33.8

%


$

908,780



34.3

%


$

843,375



34.0

%

OfficeTeam


246,391



18.3

%


242,102



19.0

%


487,111



18.4

%


473,195



19.1

%

Robert Half Technology


168,605



12.6

%


165,618



13.0

%


332,878



12.6

%


319,362



12.9

%

Robert Half Management Resources


156,845



11.7

%


142,349



11.2

%


312,479



11.8

%


287,188



11.6

%

Robert Half Finance & Accounting


113,439



8.4

%


110,583



8.7

%


219,728



8.3

%


208,996



8.4

%

Protiviti


198,638



14.8

%


181,873



14.3

%


385,809



14.6

%


345,505



14.0

%

Total


$

1,344,160



100.0

%


$

1,272,058



100.0

%


$

2,646,785



100.0

%


$

2,477,621



100.0

%


















GROSS MARGIN:

















Temporary and consultant staffing


$

387,955



37.6

%


$

365,804



37.3

%


$

762,543



37.4

%


$

714,562



37.2

%

Permanent placement staffing


113,228



99.8

%


110,377



99.8

%


219,367



99.8

%


208,616



99.8

%

Risk consulting and internal audit services


55,810



28.1

%


54,321



29.9

%


107,055



27.7

%


101,411



29.4

%

Total


$

556,993



41.4

%


$

530,502



41.7

%


$

1,088,965



41.1

%


$

1,024,589



41.4

%


















OPERATING INCOME:

















Temporary and consultant staffing


$

107,133



10.4

%


$

104,612



10.7

%


$

205,016



10.0

%


$

197,413



10.3

%

Permanent placement staffing


24,576



21.7

%


24,052



21.8

%


46,078



21.0

%


43,083



20.6

%

Risk consulting and internal audit services


17,788



9.0

%


20,483



11.3

%


32,301



8.4

%


36,753



10.6

%

Total


$

149,497



11.1

%


$

149,147



11.7

%


$

283,395



10.7

%


$

277,249



11.2

%


















SELECTED CASH FLOW INFORMATION:

















Amortization of intangible assets


$

314





$





$

602





$




Depreciation expense


$

15,587





$

13,562





$

30,710





$

26,568




Capital expenditures


$

24,930





$

16,177





$

43,740





$

29,523




Open market repurchases of common stock (shares)


1,012





900





1,694





1,381




 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)












June 30,



2016


2015



(Unaudited)

SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$

238,714



$

313,131


Accounts receivable, less allowances


$

732,193



$

687,029


Total assets


$

1,783,008



$

1,723,200


Current liabilities


$

668,179



$

663,799


Notes payable and other indebtedness, less current portion


$

925



$

1,085


Total stockholders' equity


$

1,069,508



$

1,014,675


 

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)



2015


2016


2015


2016



Q1


Q2


Q3


Q4


Q1


Q2


Q1


Q2


Q3


Q4


Q1


Q2

Global

























Accountemps


8.0


6.6


4.3


5.8


8.4


7.1


12.2


10.1


7.6


7.5


8.3


6.5

OfficeTeam


9.5


6.9


4.8


4.1


4.2


1.8


14.1


10.8


8.3


5.8


3.7


0.6

RH Technology


16.2


16.6


13.3


9.6


6.8


1.8


19.0


18.8


15.4


10.2


6.2


0.9

RH Management Resources


10.4


2.0


-2.4


4.0


7.5


10.2


17.3


7.9


2.9


7.1


7.7


9.4

Temporary and consultant staffing


10.0


7.5


4.8


5.7


7.0


5.4


14.5


11.3


8.3


7.4


6.7


4.5

Permanent placement staffing


6.2


7.5


8.2


5.1


8.0


2.6


11.9


13.0


13.6


8.2


8.6


2.1

Total staffing


9.7


7.5


5.1


5.7


7.1


5.1


14.2


11.5


8.8


7.5


6.9


4.3

Protiviti


22.0


20.4


20.5


13.9


14.4


9.2


26.6


23.4


23.0


15.4


13.7


8.3

Total


11.2


9.2


7.2


6.8


8.1


5.7


15.9


13.1


10.9


8.7


7.8


4.9


























United States

















Temporary and consultant staffing


14.8


12.4


9.9


9.2


8.5


4.6


15.6


12.4


9.8


8.2


7.3


3.5

Permanent placement staffing


15.6


18.7


16.2


11.5


12.9


3.8


16.4


18.6


16.1


10.5


11.6


2.7

Total staffing


14.8


12.9


10.4


9.4


8.9


4.5


15.7


12.9


10.3


8.4


7.6


3.4

Protiviti


26.2


24.3


24.6


15.5


16.2


7.6


27.9


24.1


24.4


15.1


14.9


6.5

Total


16.3


14.5


12.5


10.3


9.9


5.0


17.5


14.5


12.6


9.5


8.7


3.9


























International

















Temporary and consultant staffing


-6.0


-9.3


-12.8


-7.2


0.5


8.6


10.6


7.7


3.1


4.4


4.5


8.9

Permanent placement staffing


-9.8


-11.9


-7.3


-7.8


-2.8


-0.3


4.0


3.1


8.9


3.5


2.0


0.8

Total staffing


-6.6


-9.7


-12.1


-7.3


0.0


7.2


9.6


7.0


3.9


4.3


4.1


7.7

Protiviti


4.8


4.0


1.2


6.0


5.4


17.3


21.3


20.4


16.4


16.9


8.0


17.5

Total


-5.4


-8.2


-10.7


-5.8


0.6


8.4


11.0


8.5


5.3


5.9


4.6


8.9

 

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 8-10.

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):



















Year-Over-Year Revenue Growth – GLOBAL



Q1 2015


Q2 2015


 Q3 2015


Q4 2015


 Q1 2016


 Q2 2016

Accountemps









As Reported


8.0


6.6



4.3



5.8



8.4



7.1


Billing Days Impact


0.9


-0.1



-0.2



-0.9



-1.2



-1.1


Currency Impact


3.3


3.6



3.5



2.6



1.1



0.5


Same Billing Days and Constant Currency


12.2


10.1



7.6



7.5



8.3



6.5


OfficeTeam













As Reported


9.5


6.9



4.8



4.1



4.2



1.8


Billing Days Impact


0.8


-0.1



-0.2



-1.0



-1.2



-1.1


Currency Impact


3.8


4.0



3.7



2.7



0.7



-0.1


Same Billing Days and Constant Currency


14.1


10.8



8.3



5.8



3.7



0.6


Robert Half Technology













As Reported


16.2


16.6



13.3



9.6



6.8



1.8


Billing Days Impact


0.9


0.0



-0.1



-1.0



-1.2



-1.1


Currency Impact


1.9


2.2



2.2



1.6



0.6



0.2


Same Billing Days and Constant Currency


19.0


18.8



15.4



10.2



6.2



0.9


Robert Half Management Resources













As Reported


10.4


2.0



-2.4



4.0



7.5



10.2


Billing Days Impact


0.9


0.0



0.0



-1.0



-1.3



-1.2


Currency Impact


6.0


5.9



5.3



4.1



1.5



0.4


Same Billing Days and Constant Currency


17.3


7.9



2.9



7.1



7.7



9.4


Temporary and consultant staffing













As Reported


10.0


7.5



4.8



5.7



7.0



5.4


Billing Days Impact


0.9


0.0



-0.1



-1.0



-1.3



-1.2


Currency Impact


3.6


3.8



3.6



2.7



1.0



0.3


Same Billing Days and Constant Currency


14.5


11.3



8.3



7.4



6.7



4.5


Permanent placement staffing













As Reported


6.2


7.5



8.2



5.1



8.0



2.6


Billing Days Impact


0.9


0.0



-0.2



-0.9



-1.2



-1.2


Currency Impact


4.8


5.5



5.6



4.0



1.8



0.7


Same Billing Days and Constant Currency


11.9


13.0



13.6



8.2



8.6



2.1


Total staffing













As Reported


9.7


7.5



5.1



5.7



7.1



5.1


Billing Days Impact


0.8


0.0



-0.1



-1.0



-1.3



-1.1


Currency Impact


3.7


4.0



3.8



2.8



1.1



0.3


Same Billing Days and Constant Currency


14.2


11.5



8.8



7.5



6.9



4.3


Protiviti













As Reported


22.0


20.4



20.5



13.9



14.4



9.2


Billing Days Impact


1.6


-0.1



-0.2



-0.4



-1.4



-1.1


Currency Impact


3.0


3.1



2.7



1.9



0.7



0.2


Same Billing Days and Constant Currency


26.6


23.4



23.0



15.4



13.7



8.3


Total













As Reported


11.2


9.2



7.2



6.8



8.1



5.7


Billing Days Impact


1.1


0.0



0.0



-0.8



-1.3



-1.1


Currency Impact


3.6


3.9



3.7



2.7



1.0



0.3


Same Billing Days and Constant Currency


15.9


13.1



10.9



8.7



7.8



4.9


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):



















Year-Over-Year Revenue Growth – UNITED STATES



Q1 2015


Q2 2015


Q3 2015


Q4 2015


Q1 2016


Q2 2016

Temporary and consultant staffing



As Reported


14.8


12.4



9.9



9.2



8.5



4.6


Billing Days Impact


0.8


0.0



-0.1



-1.0



-1.2



-1.1


Currency Impact












Same Billing Days and Constant Currency


15.6


12.4



9.8



8.2



7.3



3.5















Permanent placement staffing













As Reported


15.6


18.7



16.2



11.5



12.9



3.8


Billing Days Impact


0.8


0.0



-0.1



-1.0



-1.3



-1.1


Currency Impact












Same Billing Days and Constant Currency


16.4


18.7



16.1



10.5



11.6



2.7















Total staffing













As Reported


14.8


12.9



10.4



9.4



8.9



4.5


Billing Days Impact


0.9


0.0



-0.1



-1.0



-1.3



-1.1


Currency Impact












Same Billing Days and Constant Currency


15.7


12.9



10.3



8.4



7.6



3.4















Protiviti













As Reported


26.2


24.3



24.6



15.5



16.2



7.6


Billing Days Impact


1.7


-0.2



-0.2



-0.4



-1.3



-1.1


Currency Impact












Same Billing Days and Constant Currency


27.9


24.1



24.4



15.1



14.9



6.5















Total













As Reported


16.3


14.5



12.5



10.3



9.9



5.0


Billing Days Impact


1.2


0.0



0.1



-0.8



-1.2



-1.1


Currency Impact












Same Billing Days and Constant Currency


17.5


14.5



12.6



9.5



8.7



3.9


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):




















Year-Over-Year Revenue Growth – INTERNATIONAL



Q1 2015


Q2 2015


Q3 2015


Q4 2015


Q1 2016


Q2 2016

Temporary and consultant staffing



As Reported


-6.0



-9.3



-12.8



-7.2



0.5



8.6


Billing Days Impact


0.8



0.0



-0.2



-1.0



-1.2



-1.2


Currency Impact


15.8



17.0



16.1



12.6



5.2



1.5


Same Billing Days and Constant Currency


10.6



7.7



3.1



4.4



4.5



8.9















Permanent placement staffing













As Reported


-9.8



-11.9



-7.3



-7.8



-2.8



-0.3


Billing Days Impact


0.7



0.0



-0.1



-1.0



-1.1



-1.1


Currency Impact


13.1



15.0



16.3



12.3



5.9



2.2


Same Billing Days and Constant Currency


4.0



3.1



8.9



3.5



2.0



0.8















Total staffing













As Reported


-6.6



-9.7



-12.1



-7.3



0.0



7.2


Billing Days Impact


0.8



0.0



-0.1



-1.0



-1.2



-1.1


Currency Impact


15.4



16.7



16.1



12.6



5.3



1.6


Same Billing Days and Constant Currency


9.6



7.0



3.9



4.3



4.1



7.7















Protiviti













As Reported


4.8



4.0



1.2



6.0



5.4



17.3


Billing Days Impact


1.6



-0.1



-0.2



-0.4



-1.3



-1.3


Currency Impact


14.9



16.5



15.4



11.3



3.9



1.5


Same Billing Days and Constant Currency


21.3



20.4



16.4



16.9



8.0



17.5















Total













As Reported


-5.4



-8.2



-10.7



-5.8



0.6



8.4


Billing Days Impact


1.1



0.0



0.0



-0.7



-1.1



-1.1


Currency Impact


15.3



16.7



16.0



12.4



5.1



1.6


Same Billing Days and Constant Currency


11.0



8.5



5.3



5.9



4.6



8.9


 

Logo - http://photos.prnewswire.com/prnh/20160212/332877LOGO

 

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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