ROBERT HALF INTERNATIONAL, INC 
By MENLO PARK, Calif., Jan. 29, 2013 /PRNewswire/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2012.
For the quarter ended December 31, 2012, net income was $58.6 million, or $.42 per share, on revenues of $1.03 billion. Net income for the prior year's fourth quarter was $42.6 million, or $.30 per share, on revenues of $973.5 million.
For the year ended December 31, 2012, net income was $209.9 million, or $1.50 per share, on revenues of $4.11 billion. For the year ended December 31, 2011, net income was $149.9 million, or $1.04 per share, on revenues of $3.78 billion.
"We were pleased with the fourth-quarter financial results for the company," said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. "Global operating income was up 35 percent as a result of continued gross-margin expansion; lower selling, general and administrative expense ratios; and a solid fourth quarter for Protiviti. This is the 11th consecutive quarter in which net income and earnings per share have grown 20 percent or more on a year-over-year basis."
Messmer added, "Revenue growth in our staffing operations reflects ongoing demand for skilled talent on an interim and full-time basis, most notably in the United States."
Robert Half International management will conduct a conference call today at 5 p.m. EST. The dial-in number is 877-814-0475 (+1-706-643-9224 outside the United States). The password to access the call is "Robert Half." A taped recording of this call will be available for replay beginning at approximately 8 p.m. EST today and ending at 8 p.m. EST on February 28. 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# 84605710. The conference call also will be archived in audio format on the company's website at www.rhi.com.
Founded in 1948, Robert Half International, 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 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 interactive, design, marketing, advertising and public relations 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: 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 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.
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.rhi.com.
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 Year
Ended December 31, Ended December 31,
------------------ ------------------
2012 2011 2012 2011
---- ---- ---- ----
Net service revenues (Unaudited) (Unaudited)
$1,034,213 $973,473 $4,111,213 $3,776,976
Direct costs of services 617,788 586,151 2,462,153 2,287,374
------- ------- --------- ---------
Gross margin 416,425 387,322 1,649,060 1,489,602
Selling, general and administrative 319,302 315,479 1,305,614 1,240,184
expenses
Amortization of intangible assets 211 35 398 153
Interest income (330) (353) (1,197) (951)
---- ---- ------ ----
Income before income taxes 97,242 72,161 344,245 250,216
Provision for income taxes 38,623 29,537 134,303 100,294
------ ------ ------- -------
Net income $58,619 $42,624 $209,942 $149,922
======= ======= ======== ========
Net income available to common $58,322 $42,037 $208,867 $147,772
stockholders - diluted
Diluted net income per share $.42 $.30 $1.50 $1.04
Shares:
Basic 136,929 138,581 138,201 140,479
Diluted 138,439 140,059 139,409 141,790
ROBERT HALF INTERNATIONALINC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
Quarter Year
Ended December 31, Ended December 31,
------------------ ------------------
2012 2011 2012 2011
---- ---- ---- ----
(Unaudited) (Unaudited)
REVENUES:
Accountemps $379,228 36.7% $363,820 37.4% $1,526,934 37.2% $1,405,782 37.2%
OfficeTeam 208,385 20.1% 195,862 20.1% 814,858 19.8% 757,146 20.1%
Robert Half Technology 120,217 11.6% 112,981 11.6% 476,458 11.6% 428,482 11.3%
Robert Half Management Resources 125,869 12.2% 116,563 12.0% 506,036 12.3% 459,589 12.2%
Robert Half Finance & Accounting 80,438 7.8% 74,824 7.7% 334,198 8.1% 302,155 8.0%
Protiviti 120,076 11.6% 109,423 11.2% 452,729 11.0% 423,822 11.2%
------- ----- ---- ----- ----- ---- -----
Total $1,034,213 100.0% $973,473 100.0% $4,111,213 100.0% $3,776,976 100.0%
===== ====== ===== ====== ====== ===== ======
GROSS MARGIN:
Temporary and consultant staffing $303,783 36.4% $282,412 35.8% $1,197,773 36.0% $1,074,006 35.2%
Permanent placement staffing 80,371 99.9% 74,756 99.9% 334,029 99.9% 301,945 99.9%
Risk consulting and internal
audit services 32,271 26.9% 30,154 27.6% 117,258 25.9% 113,651 26.8%
------ ----- ---- ----- ----- ---- -----
Total $416,425 40.3% $387,322 39.8% $1,649,060 40.1% $1,489,602 39.4%
===== ===== ==== ===== ===== ==== =====
OPERATING INCOME:
Temporary and consultant staffing $80,172 9.6% $63,594 8.1% $276,826 8.3% $209,101 6.9%
Permanent placement staffing 11,583 14.4% 5,879 7.9% 55,745 16.7% 35,340 11.7%
Risk consulting and internal
audit services 5,368 4.5% 2,370 2.2% 10,875 2.4% 4,977 1.2%
----- ---- --- ---- ---- --- ----
Total $97,123 9.4% $71,843 7.4% $343,446 8.4% $249,418 6.6%
===== ======= === ======= ======== === ========
SELECTED CASH FLOW
INFORMATION:
Amortization of intangible assets $211 $35 $398 $153
Depreciation expense $12,003 $12,753 $48,326 $51,262
Capital expenditures $14,240 $14,827 $50,056 $56,535
Open market repurchases of common
stock (shares) 1,187 286 4,689 5,308
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
December 31,
------------
2012 2011
---- ----
(Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents $287,635 $279,336
Accounts receivable, less
allowances $512,852 $493,327
Total assets $1,381,271 $1,311,836
Current liabilities $501,637 $473,001
Notes payable and other
indebtedness, $1,428 $1,545
less current portion
Total stockholders' equity $842,011 $800,505
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 staffing 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 five 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
STAFFING REVENUE GROWTH RATES (%) (UNAUDITED):
Year-Over-Year Growth Rates Non-GAAP Year-Over-Year
Growth Rates
(As Reported) (Same Billing Days and
Constant Currency)
------------ -----------------------
2011 2012 2011 2012
---- ---- ---- ----
Global Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4
--- --- --- --- --- --- --- --- --- ---
Accountemps 14.0 16.7 10.3 4.1 4.2 15.4 16.3 12.8 7.1 2.8
OfficeTeam 12.3 13.7 7.5 3.6 6.4 13.8 13.6 10.3 7.3 5.2
RH Technology 22.7 19.8 13.8 6.3 6.4 24.1 18.8 14.8 8.0 4.6
RH Management Resources 13.0 15.0 10.9 6.9 8.0 14.6 15.1 14.9 11.5 6.7
---- ---- ---- --- --- ---- ---- ---- ---- ---
Temporary and consultant
staffing 14.6 16.1 10.2 4.7 5.6 16.2 15.8 12.8 7.9 4.2
Permanent placement
staffing 26.2 22.6 10.5 3.4 7.5 28.1 22.5 14.7 8.0 6.5
---- ---- ---- --- --- ---- ---- ---- --- ---
Total 15.5 16.6 10.2 4.6 5.8 17.1 16.3 13.0 7.9 4.4
United States
Temporary and consultant
staffing 16.1 20.2 16.5 10.0 9.1 17.5 19.0 16.9 11.4 7.4
Permanent placement
staffing 35.2 29.3 22.0 15.2 16.9 36.8 28.1 22.4 16.7 15.0
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total 17.2 20.8 16.9 10.4 9.6 18.6 19.6 17.3 11.8 7.9
International
Temporary and consultant
staffing 10.7 6.2 -5.2 -8.7 -3.8 12.6 7.8 2.8 -0.8 -4.4
Permanent placement
staffing 16.6 15.4 -1.9 -10.2 -4.1 18.9 16.5 6.5 -1.9 -3.9
---- ---- ---- ----- ---- ---- ---- --- ---- ----
Total 11.5 7.5 -4.7 -8.9 -3.8 13.5 9.0 3.3 -1.0 -4.4
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 Staffing 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 10-11.
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Staffing Revenue Growth - GLOBAL
-----------------------------------------------
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
------- ------- ------- ------- -------
Accountemps
As Reported 14.0 16.7 10.3 4.1 4.2
Billing Days Impact 1.3 -1.1 0.4 1.3 -1.6
Currency Impact 0.1 0.7 2.1 1.7 0.2
--- --- --- --- ---
Same Billing Days and
Constant Currency 15.4 16.3 12.8 7.1 2.8
---- ---- ---- --- ---
OfficeTeam
As Reported 12.3 13.7 7.5 3.6 6.4
Billing Days Impact 1.3 -1.1 0.3 1.3 -1.7
Currency Impact 0.2 1.0 2.5 2.4 0.5
--- --- --- --- ---
Same Billing Days and
Constant Currency 13.8 13.6 10.3 7.3 5.2
---- ---- ---- --- ---
Robert Half Technology
As Reported 22.7 19.8 13.8 6.3 6.4
Billing Days Impact 1.4 -1.1 0.3 1.3 -1.7
Currency Impact 0.0 0.1 0.7 0.4 -0.1
--- --- --- --- ----
Same Billing Days and
Constant Currency 24.1 18.8 14.8 8.0 4.6
---- ---- ---- --- ---
Robert Half Management Resources
As Reported 13.0 15.0 10.9 6.9 8.0
Billing Days Impact 1.3 -1.1 0.3 1.4 -1.7
Currency Impact 0.3 1.2 3.7 3.2 0.4
--- --- --- --- ---
Same Billing Days and
Constant Currency 14.6 15.1 14.9 11.5 6.7
---- ---- ---- ---- ---
Temporary and consultant staffing
As Reported 14.6 16.1 10.2 4.7 5.6
Billing Days Impact 1.4 -1.1 0.4 1.3 -1.6
Currency Impact 0.2 0.8 2.2 1.9 0.2
--- --- --- --- ---
Same Billing Days and
Constant Currency 16.2 15.8 12.8 7.9 4.2
---- ---- ---- --- ---
Permanent placement staffing
As Reported 26.2 22.6 10.5 3.4 7.5
Billing Days Impact 1.5 -1.2 0.3 1.3 -1.7
Currency Impact 0.4 1.1 3.9 3.3 0.7
--- --- --- --- ---
Same Billing Days and
Constant Currency 28.1 22.5 14.7 8.0 6.5
---- ---- ---- --- ---
Total
As Reported 15.5 16.6 10.2 4.6 5.8
Billing Days Impact 1.4 -1.1 0.4 1.3 -1.7
Currency Impact 0.2 0.8 2.4 2.0 0.3
--- --- --- --- ---
Same Billing Days and
Constant Currency 17.1 16.3 13.0 7.9 4.4
---- ---- ---- --- ---
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Staffing Revenue Growth - UNITED STATES
------------------------------------------------------
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
------- ------- ------- ------- -------
Temporary and consultant
staffing
As Reported 16.1 20.2 16.5 10.0 9.1
Billing Days
Impact 1.4 -1.2 0.4 1.4 -1.7
Currency Impact - - - - -
--- --- --- --- ---
Same Billing Days
and Constant
Currency 17.5 19.0 16.9 11.4 7.4
---- ---- ---- ---- ---
Permanent placement staffing
As Reported 35.2 29.3 22.0 15.2 16.9
Billing Days
Impact 1.6 -1.2 0.4 1.5 -1.9
Currency Impact - - - - -
--- --- --- --- ---
Same Billing Days
and Constant
Currency 36.8 28.1 22.4 16.7 15.0
---- ---- ---- ---- ----
Total
As Reported 17.2 20.8 16.9 10.4 9.6
Billing Days
Impact 1.4 -1.2 0.4 1.4 -1.7
Currency Impact - - - - -
--- --- --- --- ---
Same Billing Days
and Constant
Currency 18.6 19.6 17.3 11.8 7.9
---- ---- ---- ---- ---
Year-Over-Year Staffing Revenue Growth - INTERNATIONAL
------------------------------------------------------
Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
------- ------- ------- ------- -------
Temporary and
consultant
staffing
As Reported 10.7 6.2 -5.2 -8.7 -3.8
---- --- ---- ---- ----
Billing Days
Impact 1.4 -1.0 0.3 1.2 -1.5
Currency Impact 0.5 2.6 7.7 6.7 0.9
--- --- --- --- ---
Same Billing Days
and Constant
Currency 12.6 7.8 2.8 -0.8 -4.4
---- --- --- ---- ----
Permanent
placement
staffing
As Reported 16.6 15.4 -1.9 -10.2 -4.1
Billing Days
Impact 1.4 -1.1 0.4 1.3 -1.4
Currency Impact 0.9 2.2 8.0 7.0 1.6
--- --- --- --- ---
Same Billing Days
and Constant
Currency 18.9 16.5 6.5 -1.9 -3.9
---- ---- --- ---- ----
Total
As Reported 11.5 7.5 -4.7 -8.9 -3.8
Billing Days
Impact 1.4 -1.0 0.3 1.1 -1.6
Currency Impact 0.6 2.5 7.7 6.8 1.0
--- --- --- --- ---
Same Billing Days
and Constant
Currency 13.5 9.0 3.3 -1.0 -4.4
---- --- --- ---- ----
SOURCE Robert Half International Inc.
