Robert Half International Inc. Reports Revenues and Earnings for the Second
Quarter of 2010
</pre> <p>MENLO PARK, Calif., <span class="xn-chron">July 21</span> /CNW/ -- <span class="xn-person">Robert Half</span> International Inc. (NYSE: RHI) today reported revenues and earnings for the second quarter ended <span class="xn-chron">June 30, 2010</span>.</p> <p/> <p>For the quarter ended <span class="xn-chron">June 30, 2010</span>, net income was <span class="xn-money">$12.2 million</span> or <span class="xn-money">$.08</span> per share, on revenues of <span class="xn-money">$769.1 million</span>. Net income for the prior year's second quarter was <span class="xn-money">$5.4 million</span> or <span class="xn-money">$.03</span> per share, on revenues of <span class="xn-money">$749.9 million</span>.</p> <p/> <p>For the six months ended <span class="xn-chron">June 30, 2010</span>, net income was <span class="xn-money">$20.7 million</span> or <span class="xn-money">$.13</span> per share, on revenues of <span class="xn-money">$1.51 billion</span>. For the six months ended <span class="xn-chron">June 30, 2009</span>, net income was <span class="xn-money">$14.2 million</span> or <span class="xn-money">$.09</span> per share, on revenues of <span class="xn-money">$1.57 billion</span>.</p> <p/> <p>"We were pleased to see year-over-year and sequential revenue growth during the quarter," said Harold M. Messmer, Jr., chairman and CEO of <span class="xn-person">Robert Half</span> International. "Second-quarter revenues and net income were up 3 percent and 125 percent, respectively, from the second quarter of 2009."</p> <p/> <p>Messmer added, "Our OfficeTeam and <span class="xn-person">Robert Half</span> Technology staffing divisions performed particularly well, as did our permanent-placement operations. Second-quarter revenues for our <span class="xn-person">Robert Half</span> Finance & Accounting permanent placement division were up 29 percent from one year ago and up 15 percent sequentially."</p> <p/> <p><span class="xn-person">Robert Half</span> International management will conduct a conference call today at <span class="xn-chron">5 p.m. EDT</span> following the release. The dial-in number is 800-862-9098 (+1-785-424-1051 outside the <span class="xn-location">United States</span>). A taped recording of this call will be available for replay beginning at approximately <span class="xn-chron">8 p.m. EDT</span> today and ending at <span class="xn-chron">8 p.m. EDT</span> on <span class="xn-chron">July 28</span>. The dial-in number for the replay is 800-283-8486 (+1-402-220-0869 outside the <span class="xn-location">United States</span>). The conference call also will be archived in audio format on the company's website at <a href="http://www.rhi.com">www.rhi.com</a>.</p> <p/> <p>Founded in 1948, <span class="xn-person">Robert Half</span> 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 business 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 advertising, marketing and web design professionals.</p> <p/> <p><span class="xn-person">Robert Half</span> International has staffing and consulting operations in more than 400 locations worldwide.</p> <p/> <p>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. Forwardlooking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.</p> <p/> <p>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 <span class="xn-location">United States</span> 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.</p> <p/> <p>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.</p> <p/> <p>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.</p> <pre> A copy of this release is available at www.rhi.com/InvestorCenter. </pre> <p> </p> <p> </p> <pre> ATTACHED: Summary of Operations --------- Supplemental Financial Information </pre> <p> </p> <pre> ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUMMARY OF OPERATIONS (in thousands, except per share amounts) </pre> <p> </p> <pre> Quarter Six Months Ended June 30, Ended June 30, -------------- -------------- 2010 2009 2010 2009 ---- ---- ---- ---- (Unaudited) (Unaudited) Net service revenues $769,090 $749,887 $1,506,263 $1,573,212 Direct costs of services 479,232 484,830 948,277 1,014,427 ------- ------- ------- --------- Gross margin 289,858 265,057 557,986 558,785 Selling, general and administrative 267,519 255,007 523,187 532,057 expenses Amortization of intangible assets 46 280 315 898 Interest income (94) (455) (168) (1,075) --- ---- ---- ------ Income before income taxes 22,387 10,225 34,652 26,905 Provision for income taxes 10,206 4,809 13,996 12,701 ------ ----- ------ ------ Net income $12,181 $5,416 $20,656 $14,204 ======= ====== ======= ======= Net income available to common $11,660 $4,801 $19,286 $13,110 stockholders ======= ====== ======= ======= Diluted net income per share $.08 $.03 $.13 $.09 Shares: Basic 143,100 146,443 143,667 146,660 Diluted 144,331 147,044 144,999 147,092 </pre> <p> </p> <pre> ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) </pre> <p> </p> <pre> Quarter Six Months Ended June 30, Ended June 30, -------------- -------------- 2010 2009 2010 2009 ---- ---- ---- ---- (Unaudited) (Unaudited) REVENUES: Accountemps $294,523 $310,872 $583,625 $640,253 OfficeTeam 150,420 135,711 291,854 281,101 Robert Half Technology 81,765 75,260 156,919 159,024 Robert Half Management Resources 93,089 94,490 186,085 208,540 Robert Half Finance & Accounting 56,133 43,526 104,772 93,467 Protiviti 93,160 90,028 183,008 190,827 ------ ------ ------- ------- Total $769,090 $749,887 $1,506,263 $1,573,212 ======== ======== ========== ========== GROSS MARGIN: Temporary and consultant staffing $211,430 $206,680 $412,499 $440,008 Permanent placement staffing 56,110 43,488 104,704 93,361 Risk consulting and internal audit 22,318 14,889 40,783 25,416 services ------ ------ ------ ------ Total $289,858 $265,057 $557,986 $558,785 ======== ======== ======== ======== OPERATING INCOME: Temporary and consultant staffing $23,571 $25,208 $40,517 $65,045 Permanent placement staffing 5,540 (1,965) 8,656 (6,198) Risk consulting and internal audit (6,772) (13,193) (14,374) (32,119) services ------ ------- ------- ------- Total $22,339 $10,050 $34,799 $26,728 ======= ======= ======= ======= SELECTED CASH FLOW INFORMATION: Amortization of intangible assets $46 $280 $315 $898 Depreciation expense $13,987 $16,525 $28,910 $32,788 Capital expenditures $6,136 $10,245 $14,412 $24,148 Open market repurchases of 2,486 1,010 2,486 1,516 common stock (shares) </pre> <p> </p> <pre> ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) </pre> <p> </p> <p> </p> <pre> June 30, -------- 2010 2009 ---- ---- (Unaudited) </pre> <p> </p> <pre> SELECTED BALANCE SHEET INFORMATION: Cash and cash equivalents $290,044 $385,818 Accounts receivable, less allowances $384,642 $374,020 Total assets $1,214,270 $1,323,811 Current liabilities $357,659 $346,637 Notes payable and other indebtedness, $1,719 $1,836 less current portion Total stockholders' equity $828,821 $961,169
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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