EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL, INC. JANUARY 27, 2005, PRESS RELEASE. Robert Half International, Inc. January 27, 2005, 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 RECORD REVENUES AND EARNINGS FOR THE FOURTH QUARTER OF 2004

 

MENLO PARK, California, January 27, 2005 – Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the fourth quarter ended December 31, 2004.

 

For the quarter ended December 31, 2004, net income was $49.7 million or $.28 per share, on revenues of $754.2 million. Net income for the prior year’s fourth quarter was $4.8 million or $.03 per share, on revenues of $517.7 million.

 

For the year ended December 31, 2004, net income was $140.6 million or $.79 per share, on revenues of $2.7 billion. For the year ended December 31, 2003, net income was $6.4 million or $.04 per share, on revenues of $2.0 billion.

 

“All of our operations performed well during the quarter,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc. “Overall revenues for the company rose 46 percent year over year and 7 percent sequentially, leading to record quarterly revenues and earnings.

 

“We estimate that 17 to 20 percent of our consolidated revenues related directly to Sarbanes-Oxley Act compliance work,” Messmer said. “The balance of our revenues reflected organic growth of more than 20 percent on a year-over-year basis. This broad-based improvement was particularly noteworthy in our Accountemps and OfficeTeam staffing divisions.”

 

The company’s Protiviti subsidiary, which specializes in internal audit and business and technology risk consulting, achieved sequential revenue growth in excess of 20 percent in every quarter in 2004. “Fourth-quarter revenues for Protiviti were more than triple those of the same period in 2003,” Messmer said. “Protiviti has been expanding its services steadily in areas such as forensic and fraud investigations, litigation consulting, information technology security, financial-process improvement, business continuity and enterprise-wide risk management.”

 

Messmer continued: “We believe there also will be ongoing demand for Sarbanes-Oxley-related initiatives. This includes remediation efforts to improve controls, annual testing to support ongoing compliance, initial efforts by non-accelerated filers, and development of long-term compliance processes and programs.”

 

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 800-857-9600 (+1-773-756-4602 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, 2005. The dial-in number for the replay is 800-262-5046 (+1-402-220-9715 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

 

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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 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 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,


 
     2004

    2003

    2004

    2003

 
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 754,197     $ 517,664     $ 2,675,696     $ 1,974,991  

Direct costs of services

     450,889       325,064       1,619,394       1,248,253  
    


 


 


 


Gross margin

     303,308       192,600       1,056,302       726,738  

Selling, general and administrative expenses

     222,119       183,342       824,382       707,349  

Amortization of intangible assets

     99       1,952       1,025       10,277  

Interest income

     (1,265 )     (642 )     (3,770 )     (2,603 )
    


 


 


 


Income before income taxes

     82,355       7,948       234,665       11,715  

Provision for income taxes

     32,688       3,100       94,061       5,325  
    


 


 


 


Net income

   $ 49,667     $ 4,848     $ 140,604     $ 6,390  
    


 


 


 


Diluted net income per share

   $ .28     $ .03     $ .79     $ .04  

Shares:

                                

Basic

     169,828       169,119       169,742       168,719  

Diluted

     176,769       174,866       176,866       173,175  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     Quarter
Ended December 31,


    Year
Ended December 31,


 
     2004

   2003

    2004

   2003

 
     (Unaudited)     (Unaudited)       

REVENUES:

                              

Accountemps

   $ 265,125    $ 210,366     $ 993,391    $ 823,058  

OfficeTeam

     153,600      126,098       579,753      499,100  

Robert Half Technology

     70,230      58,240       265,561      214,534  

Robert Half Management Resources

     103,366      57,593       348,763      210,160  

Robert Half Finance & Accounting

     36,947      24,910       135,882      94,840  

Protiviti

     124,929      40,457       352,346      133,299  
    

  


 

  


Total

   $ 754,197    $ 517,664     $ 2,675,696    $ 1,974,991  
    

  


 

  


GROSS MARGIN:

                              

Temporary and consultant staffing

   $ 216,701    $ 156,654     $ 787,077    $ 610,248  

Permanent placement staffing

     36,947      24,910       135,882      94,840  

Risk consulting and internal audit services

     49,660      11,036       133,343      21,650  
    

  


 

  


Total

   $ 303,308    $ 192,600     $ 1,056,302    $ 726,738  
    

  


 

  


OPERATING INCOME (LOSS):

                              

Temporary and consultant staffing

   $ 49,257    $ 8,416     $ 151,855    $ 38,259  

Permanent placement staffing

     4,310      1,326       16,919      2,559  

Risk consulting and internal audit services

     27,622      (484 )     63,146      (21,429 )
    

  


 

  


Total

   $ 81,189    $ 9,258     $ 231,920    $ 19,389  
    

  


 

  


SELECTED CASH FLOW INFORMATION:

                              

Amortization of intangible assets

   $ 99    $ 1,952     $ 1,025    $ 10,277  

Depreciation expense

   $ 11,563    $ 13,924     $ 48,088    $ 55,627  

Capital expenditures

   $ 9,765    $ 7,261     $ 32,867    $ 36,822  

Open market repurchases of common stock (shares)

     497      0       2,670      1,559  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,

     2004

   2003

     (Unaudited)     

SELECTED BALANCE SHEET INFORMATION:

             

Cash and cash equivalents

   $ 434,746    $ 376,523

Accounts receivable, less allowances

   $ 391,641    $ 242,348

Total assets

   $ 1,196,594    $ 985,647

Current liabilities

   $ 278,282    $ 185,800

Notes payable and other indebtedness, less current portion

   $ 2,266    $ 2,343

Total stockholders’ equity

   $ 911,870    $ 788,661

 

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