EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. OCTOBER 21, 2004, PRESS RELEASE. Robert Half International Inc. October 21, 2004, Press Release.

Exhibit 99.1

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 THIRD QUARTER OF 2004

 

MENLO PARK, California, October 21, 2004—Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the third quarter ended September 30, 2004.

 

For the quarter ended September 30, 2004, net income was $43.1 million or $.24 per share, on revenues of $708.0 million. Net income for the prior year’s third quarter was $4.8 million or $.03 per share, on revenues of $501.1 million. The $.24 income per share reported for the third quarter of 2004 includes $.06 income per share for the company’s Protiviti® subsidiary.

 

For the nine months ended September 30, 2004, net income was $90.9 million or $.52 per share, on revenues of $1.9 billion. For the nine months ended September 30, 2003, net income was $1.5 million or $.01 per share, on revenues of $1.5 billion.

 

“We were pleased with the performance of our staffing operations and Protiviti during the quarter,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc. “Overall revenues for the company rose 41 percent year over year and 10 percent sequentially.

 

“We estimate that 15 to 20 percent of our consolidated revenues related directly to Sarbanes-Oxley Act compliance work, which continued to grow significantly during the quarter,” Messmer said. “The remaining 80 to 85 percent of revenues reflected organic gains of more than 20 percent on a year-over-year basis. This broad-based improvement was particularly noteworthy in our Accountemps, OfficeTeam and Robert Half Technology staffing divisions.”

 

Commenting on the company’s Protiviti division, Messmer said: “Protiviti built tremendous momentum, surpassing the $100-million revenue milestone for the quarter. This business has demonstrated its ability to deliver its suite of consulting services in highly sought-after specialty areas such as internal audit co-sourcing and outsourcing, business-process improvement, business continuity, information technology audit security, and many 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 800-857-9600 (+1-517-308-9001 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 October 27, 2004. The dial-in number for the replay is 866-495-2424 (+1-203-369-1761 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;

 

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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 330 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 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 success of the company in attracting, training, and retaining qualified management personnel and other staff employees; whether governments will impose additional regulations or licensing requirements on personnel services businesses in particular or on employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; and 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.

 

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; 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 possible 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 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

September 30,


    Nine Months Ended
September 30,


 
     2004

    2003

    2004

    2003

 
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 707,987     $ 501,137     $ 1,921,499     $ 1,457,327  

Direct costs of services

     425,652       314,026       1,168,505       923,189  
    


 


 


 


Gross margin

     282,335       187,111       752,994       534,138  

Selling, general and administrative expenses

     212,155       176,097       602,263       524,007  

Amortization of intangible assets

     99       2,791       926       8,325  

Interest income

     (1,127 )     (590 )     (2,505 )     (1,961 )
    


 


 


 


Income before income taxes

     71,208       8,813       152,310       3,767  

Provision for income taxes

     28,128       3,966       61,373       2,225  
    


 


 


 


Net income

   $ 43,080     $ 4,847     $ 90,937     $ 1,542  
    


 


 


 


Diluted net income per share

   $ .24     $ .03     $ .52     $ .01  

Shares:

                                

Basic

     170,041       168,797       169,714       168,584  

Diluted

     176,636       173,694       176,234       172,140  

 

 

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended September 30,


    Nine Months Ended
September 30,


 
     2004

   2003

    2004

   2003

 
     (Unaudited)     (Unaudited)  

REVENUES:

                              

Accountemps

   $ 257,090    $ 206,068     $ 728,266    $ 612,692  

OfficeTeam

     149,024      127,814       426,153      373,002  

Robert Half Technology

     70,570      54,598       195,331      156,294  

Robert Half Management Resources

     95,277      50,988       245,397      152,567  

Robert Half Finance & Accounting

     35,768      23,599       98,935      69,930  

Protiviti

     100,258      38,070       227,417      92,842  
    

  


 

  


Total

   $ 707,987    $ 501,137     $ 1,921,499    $ 1,457,327  
    

  


 

  


GROSS MARGIN:

                              

Temporary and consultant staffing

   $ 207,058    $ 154,107     $ 570,376    $ 453,594  

Permanent placement staffing

     35,768      23,599       98,935      69,930  

Risk consulting and internal audit services

     39,509      9,405       83,683      10,614  
    

  


 

  


Total

   $ 282,335    $ 187,111     $ 752,994    $ 534,138  
    

  


 

  


OPERATING INCOME (LOSS):

                              

Temporary and consultant staffing

   $ 46,369    $ 11,428     $ 102,598    $ 29,843  

Permanent placement staffing

     4,353      505       12,609      1,233  

Risk consulting and internal audit services

     19,458      (919 )     35,524      (20,945 )
    

  


 

  


Total

   $ 70,180    $ 11,014     $ 150,731    $ 10,131  
    

  


 

  


SELECTED CASH FLOW INFORMATION:

                              

Amortization of intangible assets

   $ 99    $ 2,791     $ 926    $ 8,325  

Depreciation expense

   $ 11,883    $ 14,200     $ 36,525    $ 41,703  

Capital expenditures

   $ 9,902    $ 9,950     $ 23,102    $ 29,561  

Open market repurchases of common stock (shares)

     1,254      400       2,173      1,559  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     September 30,

     2004

   2003

     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

             

Cash and cash equivalents

   $ 412,572    $ 344,190

Accounts receivable, less allowances

   $ 369,237    $ 236,078

Total assets

   $ 1,141,768    $ 977,107

Current liabilities

   $ 282,462    $ 209,126

Notes payable and other indebtedness, less current portion

   $ 2,286    $ 2,361

Total stockholders’ equity

   $ 853,825    $ 755,036

 

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