EX-99 2 dex99.htm PRESS RELEASE Press Release

Exhibit 99

 

FOR IMMEDIATE RELEASE

 

Contact:   

M. Keith Waddell

Vice Chairman, President and

Chief Financial Officer

(650) 234-6000

 

ROBERT HALF INTERNATIONAL INC. REPORTS REVENUES AND EARNINGS

FOR THE SECOND QUARTER OF 2004

 

MENLO PARK, California, July 22, 2004 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2004.

 

For the quarter ended June 30, 2004, net income was $32.4 million or $.18 per share, on revenues of $641.2 million. Net income for the prior year’s second quarter was $0.1 million or $.00 per share, on revenues of $483.0 million. The $.18 income per share reported for the second quarter of 2004 includes $.04 income per share for the company’s Protiviti® subsidiary.

 

For the six months ended June 30, 2004, net income was $47.9 million or $.27 per share, on revenues of $1.2 billion. For the six months ended June 30, 2003, net loss was $3.3 million or $.02 per share, on revenues of $956.2 million.

 

“We were pleased with our financial results for the second quarter of 2004,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc. “Companywide revenues rose 33 percent year over year and 12 percent sequentially as a result of increased demand within each of our professional areas of specialization. Income per share increased 18 cents from the prior year.

 

“Our staffing operations generated significantly higher income, aided by revenue growth, expanded gross margin and better leverage of fixed operating costs,” Messmer said. He added, “Staffing operating margin reached its highest level in more than three years.

 

“Our Protiviti subsidiary continues to experience robust demand for its services, reinforcing its position as a leading international provider of risk management and internal audit expertise,” Messmer said. “Protiviti reported significantly higher revenues during the quarter and earnings reached record levels.” Protiviti’s suite of risk consulting services includes co-sourced and outsourced internal audit, Sarbanes-Oxley Section 404 compliance, information technology (IT) audit and IT security, among other areas.

 

Robert Half International management will conduct a conference call today at 5 p.m. EDT to discuss the quarterly financial results. The dial-in number is 888-730-9135 (+1-517-319-9283 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. EDT today and ending at 8 p.m. EDT on July 28, 2004. The dial-in number for the replay is 800-867-1930 (+1-402-280-1684 outside the United States). The conference call will also be archived in audio format on the company’s website at www.rhi.com.

 

Founded in 1948, Robert Half International Inc. (RHI) is the world’s first and largest specialized staffing firm. RHI is a recognized leader in professional staffing and consulting services and is the parent company of Protiviti (www.protiviti.com), a leading independent internal audit and risk consulting firm.

 

The company’s specialized staffing 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 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. RHI 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.

 

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 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 June 30,


   

Six Months

Ended June 30,


 
     2004

    2003

    2004

    2003

 
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 641,230     $ 482,962     $ 1,213,512     $ 956,190  

Direct costs of services

     386,598       305,587       742,853       609,163  
    


 


 


 


Gross margin

     254,632       177,375       470,659       347,027  

Selling, general and administrative expenses

     198,977       175,002       390,108       347,910  

Amortization of intangible assets

     738       2,759       827       5,534  

Interest income

     (744 )     (590 )     (1,378 )     (1,371 )
    


 


 


 


Income (loss) before income taxes

     55,661       204       81,102       (5,046 )

Provision (benefit) for income taxes

     23,220       70       33,245       (1,741 )
    


 


 


 


Net income (loss)

   $ 32,441     $ 134     $ 47,857     $ (3,305 )
    


 


 


 


Diluted net income (loss) per share

   $ .18     $ .00     $ .27     $ (.02 )

Shares:

                                

Basic

     169,785       168,597       169,548       168,475  

Diluted

     176,889       171,839       175,965       168,475  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended June 30,


   

Six Months

Ended June 30,


 
     2004

   2003

    2004

   2003

 
     (Unaudited)     (Unaudited)  

REVENUES:

                              

Accountemps

   $ 243,027    $ 202,327     $ 471,176    $ 406,624  

OfficeTeam

     145,626      124,601       277,129      245,188  

Robert Half Technology

     65,447      50,947       124,761      101,696  

Robert Half Management Resources

     79,372      50,432       150,120      101,579  

Robert Half Finance & Accounting

     34,309      23,991       63,167      46,331  

Protiviti

     73,449      30,664       127,159      54,772  
    

  


 

  


Total

   $ 641,230    $ 482,962     $ 1,213,512    $ 956,190  
    

  


 

  


GROSS MARGIN:

                              

Temporary and consultant staffing

   $ 192,154    $ 150,825     $ 363,318    $ 299,487  

Permanent placement staffing

     34,309      23,991       63,167      46,331  

Risk consulting and internal audit services

     28,169      2,559       44,174      1,209  
    

  


 

  


Total

   $ 254,632    $ 177,375     $ 470,659    $ 347,027  
    

  


 

  


OPERATING INCOME (LOSS):

                              

Temporary and consultant staffing

   $ 37,230    $ 9,824     $ 56,229    $ 18,415  

Permanent placement staffing

     5,583      1,357       8,256      728  

Risk consulting and internal audit services

     12,842      (8,808 )     16,066      (20,026 )
    

  


 

  


Total

   $ 55,655    $ 2,373     $ 80,551    $ (883 )
    

  


 

  


SELECTED CASH FLOW INFORMATION:

                              

Amortization of intangible assets

   $ 738    $ 2,759     $ 827    $ 5,534  

Depreciation expense

   $ 11,529    $ 13,741     $ 24,642    $ 27,503  

Capital expenditures

   $ 4,599    $ 8,601     $ 13,200    $ 19,611  

Open market repurchases of common stock (shares)

     0      167       919      1,159  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     June 30,

     2004

   2003

     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

             

Cash and cash equivalents

   $ 419,507    $ 317,674

Accounts receivable, less allowances

   $ 321,724    $ 228,433

Total assets

   $ 1,093,081    $ 950,318

Current liabilities

   $ 255,136    $ 201,778

Notes payable and other indebtedness, less current portion

   $ 2,305    $ 2,379

Total stockholders’ equity

   $ 835,640    $ 745,498

 

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