Robert Half Reports Third-Quarter Financial Results

MENLO PARK, Calif., Oct. 21, 2015 /CNW/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the third quarter ended September 30, 2015.

For the quarter ended September 30, 2015, net income was $97 million, or $.73 per share, on revenues of $1.31 billion. Net income for the prior year's third quarter was $85 million, or $.63 per share, on revenues of $1.22 billion.

For the nine months ended September 30, 2015, net income was $264 million, or $1.98 per share, on revenues of $3.79 billion. For the nine months ended September 30, 2014, net income was $222 million, or $1.63 per share, on revenues of $3.47 billion.

"Improving labor markets, particularly in the United States, contributed to higher demand for Robert Half's professional staffing and consulting services during the third quarter," said Harold M. Messmer, Jr., chairman and CEO of Robert Half. "Consolidated quarterly revenues reached record levels, fueled by strong results from Protiviti, Robert Half Technology and our permanent placement operations. Protiviti had an outstanding quarter, with revenues up 23 percent from one year ago when adjusted for currency."

Messmer continued, "This was Robert Half's 22nd straight quarter of double-digit net income and earnings per share growth on a year-over-year percentage basis. Unlevered return on equity was 38 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. EST on November 21. 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# 48008972. 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 Ended September 30,


Nine Months Ended September 30,



2015


2014


2015


2014



(Unaudited)


(Unaudited)










Net service revenues


$

1,312,718



$

1,224,308



$

3,790,339



$

3,473,564


Direct costs of services


762,917



719,088



2,215,949



2,051,405











Gross margin


549,801



505,220



1,574,390



1,422,159











Selling, general and administrative expenses


390,735



366,967



1,138,075



1,058,144


Amortization of intangible assets








557


Interest income, net


(240)



(108)



(400)



(570)











Income before income taxes


159,306



138,361



436,715



364,028


Provision for income taxes


62,581



53,177



172,362



142,153











Net income


$

96,725



$

85,184



$

264,353



$

221,875











Diluted net income per share


$

.73



$

.63



$

1.98



$

1.63











Shares:









Basic


131,285



134,054



132,280



134,690


Diluted


132,488



135,366



133,436



135,740


 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

































Quarter Ended September 30,


Nine Months Ended September 30,



2015


2014


2015


2014



(Unaudited)


(Unaudited)

REVENUES:

















Accountemps


$

434,152



33.1

%


$

416,413



34.0

%


$

1,277,527



33.6

%


$

1,202,433



34.6

%

OfficeTeam


249,087



19.0

%


237,723



19.4

%


722,282



19.4

%


675,288



19.5

%

Robert Half Technology


170,211



13.0

%


150,166



12.3

%


489,573



12.8

%


424,459



12.2

%

Robert Half Management Resources


146,372



11.1

%


149,923



12.2

%


433,560



11.4

%


420,653



12.1

%

Robert Half Finance & Accounting


110,748



8.4

%


102,345



8.4

%


319,744



8.4

%


297,797



8.6

%

Protiviti


202,148



15.4

%


167,738



13.7

%


547,653



14.4

%


452,934



13.0

%

Total


$

1,312,718



100.0

%


$

1,224,308



100.0

%


$

3,790,339



100.0

%


$

3,473,564



100.0

%


















GROSS MARGIN:

















Temporary and consultant staffing


$

372,762



37.3

%


$

351,791



36.9

%


$

1,087,324



37.2

%


$

993,714



36.5

%

Permanent placement staffing


110,610



99.9

%


102,314



100.0

%


319,226



99.8

%


297,697



100.0

%

Risk consulting and internal audit services


66,429



32.9

%


51,115



30.5

%


167,840



30.6

%


130,748



28.9

%

Total


$

549,801



41.9

%


$

505,220



41.3

%


$

1,574,390



41.5

%


$

1,422,159



40.9

%


















OPERATING INCOME:

















Temporary and consultant staffing


$

102,991



10.3

%


$

97,660



10.2

%


$

300,404



10.3

%


$

263,901



9.7

%

Permanent placement staffing


24,377



22.0

%


21,380



20.9

%


67,460



21.1

%


61,103



20.5

%

Risk consulting and internal audit services


31,698



15.7

%


19,213



11.5

%


68,451



12.5

%


39,011



8.6

%

Total


$

159,066



12.1

%


$

138,253



11.3

%


$

436,315



11.5

%


$

364,015



10.5

%


















SELECTED CASH FLOW INFORMATION:

















Amortization of intangible assets


$





$





$





$

557




Depreciation expense


$

12,919





$

12,107





$

39,487





$

36,170




Capital expenditures


$

18,753





$

13,122





$

48,276





$

36,207




Open market repurchases of common stock (shares)


1,551





1,237





2,932





2,543




 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)













September 30,



2015


2014



(Unaudited)

SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$

251,818



$

290,876


Accounts receivable, less allowances


$

731,574



$

657,105


Total assets


$

1,713,873



$

1,627,013


Current liabilities


$

664,169



$

623,905


Notes payable and other indebtedness, less current portion


$

1,046



$

1,196


Total stockholders' equity


$

1,006,476



$

972,583


 

 

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



Q2


Q3


Q4


Q1


Q2


Q3


Q2


Q3


Q4


Q1


Q2


Q3

Global

























Accountemps


6.5


10.1


9.6


8.0


6.6


4.3


6.5


9.8


11.6


12.2


10.1


7.6

OfficeTeam


9.1


14.1


12.6


9.5


6.9


4.8


9.0


14.0


14.7


14.1


10.8


8.3

RH Technology


7.8


11.0


11.4


16.2


16.6


13.3


8.5


10.9


12.7


19.0


18.8


15.4

RH Management Resources


12.4


18.9


14.1


10.4


2.0


-2.4


12.2


18.4


17.3


17.3


7.9


2.9

Temporary and consultant staffing


8.2


12.5


11.3


10.0


7.5


4.8


8.3


12.3


13.4


14.5


11.3


8.3

Permanent placement staffing


13.8


16.0


12.8


6.2


7.5


8.2


14.2


15.7


15.7


11.9


13.0


13.6

Total staffing


8.7


12.9


11.5


9.7


7.5


5.1


8.9


12.6


13.6


14.2


11.5


8.8

Protiviti


15.5


20.7


20.9


22.0


20.4


20.5


14.4


18.3


22.5


26.6


23.4


23.0

Total


9.6


13.9


12.7


11.2


9.2


7.2


9.6


13.4


14.9


15.9


13.1


10.9


























United States

















Temporary and consultant staffing


9.3


13.2


13.8


14.8


12.4


9.9


9.8


13.0


14.0


15.6


12.4


9.8

Permanent placement staffing


15.8


21.8


20.8


15.6


18.7


16.2


16.3


21.6


21.0


16.4


18.6


16.1

Total staffing


9.8


13.9


14.3


14.8


12.9


10.4


10.3


13.7


14.6


15.7


12.9


10.3

Protiviti


19.0


22.0


26.9


26.2


24.3


24.6


18.4


19.9


27.1


27.9


24.1


24.4

Total


11.0


15.0


16.0


16.3


14.5


12.5


11.4


14.6


16.4


17.5


14.5


12.6


























International

















Temporary and consultant staffing


4.6


10.4


3.1


-6.0


-9.3


-12.8


3.3


9.9


11.4


10.6


7.7


3.1

Permanent placement staffing


10.6


6.3


-0.6


-9.8


-11.9


-7.3


10.7


5.6


6.8


4.0


3.1


8.9

Total staffing


5.4


9.8


2.6


-6.6


-9.7


-12.1


4.4


9.3


10.8


9.6


7.0


3.9

Protiviti


2.4


14.6


-1.2


4.8


4.0


1.2


-0.2


11.0


5.4


21.3


20.4


16.4

Total


5.1


10.3


2.1


-5.4


-8.2


-10.7


3.9


9.5


10.1


11.0


8.5


5.3

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




Q2 2014


Q3 2014


Q4 2014


Q1 2015


Q2 2015


 Q3 2015

Accountemps













As Reported


6.5


10.1


9.6


8.0


6.6


4.3

Billing Days Impact


0.4


-0.1


0.3


0.9


-0.1


-0.2

Currency Impact


-0.4


-0.2


1.7


3.3


3.6


3.5

Same Billing Days and Constant Currency


6.5


9.8


11.6


12.2


10.1


7.6

OfficeTeam













As Reported


9.1


14.1


12.6


9.5


6.9


4.8

Billing Days Impact


0.5


-0.2


0.2


0.8


-0.1


-0.2

Currency Impact


-0.6


0.1


1.9


3.8


4.0


3.7

Same Billing Days and Constant Currency


9.0


14.0


14.7


14.1


10.8


8.3

Robert Half Technology













As Reported


7.8


11.0


11.4


16.2


16.6


13.3

Billing Days Impact


0.5


-0.2


0.3


0.9


0.0


-0.1

Currency Impact


0.2


0.1


1.0


1.9


2.2


2.2

Same Billing Days and Constant Currency


8.5


10.9


12.7


19.0


18.8


15.4

Robert Half Management Resources













As Reported


12.4


18.9


14.1


10.4


2.0


-2.4

Billing Days Impact


0.6


-0.2


0.2


0.9


0.0


0.0

Currency Impact


-0.8


-0.3


3.0


6.0


5.9


5.3

Same Billing Days and Constant Currency


12.2


18.4


17.3


17.3


7.9


2.9

Temporary and consultant staffing













As Reported


8.2


12.5


11.3


10.0


7.5


4.8

Billing Days Impact


0.5


-0.1


0.3


0.9


0.0


-0.1

Currency Impact


-0.4


-0.1


1.8


3.6


3.8


3.6

Same Billing Days and Constant Currency


8.3


12.3


13.4


14.5


11.3


8.3

Permanent placement staffing













As Reported


13.8


16.0


12.8


6.2


7.5


8.2

Billing Days Impact


0.6


-0.1


0.2


0.9


0.0


-0.2

Currency Impact


-0.2


-0.2


2.7


4.8


5.5


5.6

Same Billing Days and Constant Currency


14.2


15.7


15.7


11.9


13.0


13.6

Total staffing













As Reported


8.7


12.9


11.5


9.7


7.5


5.1

Billing Days Impact


0.6


-0.2


0.2


0.8


0.0


-0.1

Currency Impact


-0.4


-0.1


1.9


3.7


4.0


3.8

Same Billing Days and Constant Currency


8.9


12.6


13.6


14.2


11.5


8.8

Protiviti











As Reported


15.5


20.7


20.9


22.0


20.4


20.5

Billing Days Impact


-0.7


-2.1


0.2


1.6


-0.1


-0.2

Currency Impact


-0.4


-0.3


1.4


3.0


3.1


2.7

Same Billing Days and Constant Currency


14.4


18.3


22.5


26.6


23.4


23.0

Total













As Reported


9.6


13.9


12.7


11.2


9.2


7.2

Billing Days Impact


0.4


-0.4


0.3


1.1


0.0


0.0

Currency Impact


-0.4


-0.1


1.9


3.6


3.9


3.7

Same Billing Days and Constant Currency


9.6


13.4


14.9


15.9


13.1


10.9

 

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):



















Year-Over-Year Revenue Growth – UNITED STATES




Q2 2014


Q3 2014


Q4 2014


Q1 2015


Q2 2015


Q3 2015

Temporary and consultant staffing



As Reported


9.3


13.2


13.8


14.8


12.4


9.9

Billing Days Impact


0.5


-0.2


0.2


0.8


0.0


-0.1

Currency Impact







Same Billing Days and Constant Currency


9.8


13.0


14.0


15.6


12.4


9.8














Permanent placement staffing













As Reported


15.8


21.8


20.8


15.6


18.7


16.2

Billing Days Impact


0.5


-0.2


0.2


0.8


0.0


-0.1

Currency Impact







Same Billing Days and Constant Currency


16.3


21.6


21.0


16.4


18.7


16.1














Total staffing













As Reported


9.8


13.9


14.3


14.8


12.9


10.4

Billing Days Impact


0.5


-0.2


0.3


0.9


0.0


-0.1

Currency Impact







Same Billing Days and Constant Currency


10.3


13.7


14.6


15.7


12.9


10.3














Protiviti













As Reported


19.0


22.0


26.9


26.2


24.3


24.6

Billing Days Impact


-0.6


-2.1


0.2


1.7


-0.2


-0.2

Currency Impact







Same Billing Days and Constant Currency


18.4


19.9


27.1


27.9


24.1


24.4














Total













As Reported


11.0


15.0


16.0


16.3


14.5


12.5

Billing Days Impact


0.4


-0.4


0.4


1.2


0.0


0.1

Currency Impact







Same Billing Days and Constant Currency


11.4


14.6


16.4


17.5


14.5


12.6

 

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):





















Year-Over-Year Revenue Growth – INTERNATIONAL




Q2 2014


Q3 2014


Q4 2014


Q1 2015


Q2 2015


Q3 2015

Temporary and consultant staffing



As Reported


4.6


10.4


3.1


-6.0


-9.3


-12.8

Billing Days Impact


0.4


-0.2


0.2


0.8


0.0


-0.2

Currency Impact


-1.7


-0.3


8.1


15.8


17.0


16.1

Same Billing Days and Constant Currency


3.3


9.9


11.4


10.6


7.7


3.1














Permanent placement staffing













As Reported


10.6


6.3


-0.6


-9.8


-11.9


-7.3

Billing Days Impact


0.5


-0.2


0.2


0.7


0.0


-0.1

Currency Impact


-0.4


-0.5


7.2


13.1


15.0


16.3

Same Billing Days and Constant Currency


10.7


5.6


6.8


4.0


3.1


8.9














Total staffing













As Reported


5.4


9.8


2.6


-6.6


-9.7


-12.1

Billing Days Impact


0.5


-0.2


0.3


0.8


0.0


-0.1

Currency Impact


-1.5


-0.3


7.9


15.4


16.7


16.1

Same Billing Days and Constant Currency


4.4


9.3


10.8


9.6


7.0


3.9














Protiviti













As Reported


2.4


14.6


-1.2


4.8


4.0


1.2

Billing Days Impact


-0.6


-2.0


0.1


1.6


-0.1


-0.2

Currency Impact


-2.0


-1.6


6.5


14.9


16.5


15.4

Same Billing Days and Constant Currency


-0.2


11.0


5.4


21.3


20.4


16.4














Total













As Reported


5.1


10.3


2.1


-5.4


-8.2


-10.7

Billing Days Impact


0.4


-0.3


0.2


1.1


0.0


0.0

Currency Impact


-1.6


-0.5


7.8


15.3


16.7


16.0

Same Billing Days and Constant Currency


3.9


9.5


10.1


11.0


8.5


5.3

 

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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