EX-99 3 a04-1391_1ex99.htm EX-99

Exhibit 99

 

FOR IMMEDIATE RELEASE

 

 

 

Contact:

 

M. Keith Waddell

 

 

Vice Chairman and

 

 

Chief Financial Officer

 

 

(650) 234-6000

 

 

ROBERT HALF INTERNATIONAL INC.

 

REPORTS FOURTH-QUARTER REVENUES AND EARNINGS

 

MENLO PARK, California, January 27, 2004 — Robert Half International Inc.  (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2003.

 

For the quarter ended December 31, 2003, net income was $4.8 million or $.03 per share, on revenues of $517.7 million.  Net loss for the prior year’s fourth quarter was $7.1 million or $.04 per share, on revenues of $478.6 million.  The $.03 per share reported for the fourth quarter of 2003 is after a $.01 loss per share impact from the company’s Protiviti® subsidiary.

 

For the year ended December 31, 2003, net income was $6.4 million or $.04 per share, on revenues of $2.0 billion.  For the year ended December 31, 2002, net income was $2.2 million or $.01 per share, on revenues of $1.9 billion.

 

(more)

 



 

Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc., said:  “We were pleased with our financial results for the fourth quarter and are encouraged by eight months of uninterrupted job growth in the temporary services industry.  This is the third consecutive quarter of sequential revenue improvement in our staffing operations.

 

“Protiviti, our internal audit and risk-consulting subsidiary, recorded continued growth for the quarter,” Messmer said.  “Engagements with clients on Sarbanes-Oxley Act Section 404 compliance and the establishment of new internal audit functions continued to drive demand.  This business is also broadening the scope of its services in business and technology risk consulting, with expanding work in regulatory and forensic investigations, IT security and other areas.”

 

Robert Half International management will conduct a conference call today at 5 p.m. EST to discuss the quarterly financial results.  The dial-in number is 888-469-0487 (+1-210-839-8500 outside the United States) and the passcode is “Robert Half International.”  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 2, 2004.  The dial-in number for the replay is 800-839-2290 (+1-402-998-0585 outside the United States).  The conference call will also be archived in audio format on the company’s website at www.rhi.com.

 

Robert Half International Inc. is the world’s largest provider of specialized staffing services.  Its divisions include Accountemps®, Robert Half® Finance & Accounting and Robert Half® Management Resources, for temporary, full-time and project professionals, respectively, in the fields of accounting and finance; OfficeTeam®, for highly skilled temporary administrative

 

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support personnel; Robert Half® Technology, for information technology professionals; The Affiliates®, for legal personnel; and The Creative Group®, for advertising, marketing and web design professionals.  The company serves its clients and candidates through more than 325 offices worldwide and through online job search services at its divisional websites, all of which can be accessed at www.rhi.com.  Robert Half International is also the parent company of Protiviti  (www.protiviti.com), a leading independent business risk consulting and internal audit firm.

 

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: 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 qualified candidates for temporary employment or the company’s ability to attract qualified 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

 

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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 success of the company in attracting, training, and retaining qualified management personnel and other staff employees; and whether governments will impose additional regulations or licensing requirements on personnel services businesses in particular or on employer/employee relationships in general.

 

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; significant costs and diversion of management time could be incurred in integrating key personnel into Protiviti; 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 we could become involved 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 press release is available at www.rhi.com.

 

 

ATTACHED:

 

Summary of Operations

 

 

 

 

 

Supplemental Financial Information

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)

 

 

 

Quarter
Ended December 31,

 

Year
Ended December 31,

 

 

 

2003

 

2002

 

2003

 

2002

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net service revenues

 

$

517,664

 

$

478,581

 

$

1,974,991

 

$

1,904,951

 

 

 

 

 

 

 

 

 

 

 

Direct costs of services

 

325,064

 

307,301

 

1,248,253

 

1,190,216

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

192,600

 

171,280

 

726,738

 

714,735

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

183,342

 

180,736

 

707,349

 

709,542

 

Amortization of intangible assets

 

1,952

 

2,737

 

10,277

 

6,281

 

Interest income

 

(642

)

(794

)

(2,603

)

(4,585

)

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

7,948

 

(11,399

)

11,715

 

3,497

 

Provision (benefit) for income taxes

 

3,100

 

(4,332

)

5,325

 

1,329

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

4,848

 

$

(7,067

)

$

6,390

 

$

2,168

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

$

.03

 

$

(.04

)

$

.04

 

$

.01

 

 

 

 

 

 

 

 

 

 

 

Shares:

 

 

 

 

 

 

 

 

 

Basic

 

169,119

 

169,571

 

168,719

 

172,484

 

Diluted

 

174,866

 

169,571

 

173,175

 

177,791

 

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)

 

 

 

Quarter
Ended December 31,

 

Year
Ended December 31,

 

 

 

2003

 

2002

 

2003

 

2002

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES:

 

 

 

 

 

 

 

 

 

Accountemps

 

$

210,366

 

$

205,663

 

$

823,058

 

$

840,108

 

OfficeTeam

 

126,098

 

127,371

 

499,100

 

488,679

 

RH Technology

 

58,240

 

52,915

 

214,534

 

220,716

 

RH Management Resources

 

57,593

 

52,539

 

210,160

 

213,715

 

RH Finance & Accounting

 

24,910

 

22,973

 

94,840

 

100,029

 

Protiviti

 

40,457

 

17,120

 

133,299

 

41,704

 

Total

 

$

517,664

 

$

478,581

 

$

1,974,991

 

$

1,904,951

 

 

 

 

 

 

 

 

 

 

 

GROSS MARGIN:

 

 

 

 

 

 

 

 

 

Temporary and consultant staffing

 

$

156,654

 

$

153,820

 

$

610,248

 

$

627,903

 

Permanent placement staffing

 

24,910

 

22,973

 

94,840

 

100,029

 

Risk consulting and internal audit services

 

11,036

 

(5,513

)

21,650

 

(13,197

)

Total

 

$

192,600

 

$

171,280

 

$

726,738

 

$

714,735

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME (LOSS):

 

 

 

 

 

 

 

 

 

Temporary and consultant staffing

 

$

8,416

 

$

8,059

 

$

38,259

 

$

47,404

 

Permanent placement staffing

 

1,326

 

(2,644

)

2,559

 

(6,852

)

Risk consulting and internal audit services

 

(484

)

(14,871

)

(21,429

)

(35,359

)

Total

 

$

9,258

 

$

(9,456

)

$

19,389

 

$

5,193

 

 

 

 

 

 

 

 

 

 

 

SELECTED CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

$

1,952

 

$

2,737

 

$

10,277

 

$

6,281

 

Depreciation expense

 

$

13,924

 

$

15,093

 

$

55,627

 

$

66,027

 

Capital expenditures

 

$

6,925

 

$

7,477

 

$

36,492

 

$

48,300

 

Open market repurchases of common stock (shares)

 

0

 

795

 

1,559

 

6,865

 

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)

 

 

 

December 31,

 

 

 

2003

 

2002

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

SELECTED BALANCE SHEET INFORMATION:

 

 

 

 

 

Cash and cash equivalents

 

$

376,523

 

$

316,927

 

Accounts receivable, less allowances

 

$

242,348

 

$

225,721

 

Total assets

 

$

979,903

 

$

937,996

 

Current liabilities

 

$

188,899

 

$

186,540

 

Notes payable and other indebtedness, less current portion

 

$

2,343

 

$

2,414

 

Total stockholders’ equity

 

$

788,661

 

$

744,966

 

 

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