EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL, INC. APRIL 20, 2006 PRESS RELEASE Robert Half International, Inc. April 20, 2006 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 FIRST QUARTER OF 2006

MENLO PARK, California, April 20, 2006—Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the first quarter ended March 31, 2006.

For the quarter ended March 31, 2006, net income was $65.5 million or $.38 per share, on revenues of $943.9 million. Net income for the prior year’s first quarter was $51.6 million or $.29 per share, on revenues of $769.9 million.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International Inc., said: “We were pleased with the record revenue and earnings results achieved during the first quarter. Revenues and income per share increased 23 percent and 29 percent, respectively, over last year.

“Revenues in our staffing operations grew year over year and sequentially,” Messmer added. “Our Robert Half Finance & Accounting and Accountemps divisions performed particularly well, reflecting continued strength in the demand for accounting and finance professionals.”

Discussing Protiviti, the company’s internal audit and risk consulting subsidiary, Messmer said, “During the quarter, Protiviti continued to broaden its revenue base with outsourced and co-sourced internal audit engagements and business and technology risk consulting services. We also expanded our footprint by adding new locations in the United States, Australia, Canada and Germany. Protiviti is now in more than 50 major cities in North America, Europe, Latin America and the Asia/Pacific region.”

Robert Half International management will conduct a conference call today at 5 p.m. ET to discuss the quarterly financial results. The dial-in number is 800-795-1259 (+1-785-832-2422 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. ET today and ending at 8 p.m. ET on April 27. The dial-in number for the replay is 800-283-8217 (+1-402-220-0868 outside the United States). 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 Inc. (RHI) is the world’s first and largest specialized staffing firm. RHI is a recognized leader in professional consulting and staffing 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. The company has staffing and consulting operations in more than 390 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”,

 

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“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 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; 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; 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

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

 

    

Quarter

Ended March 31,

 
     2006     2005  
     (Unaudited)  

Net service revenues

   $ 943,924     $ 769,948  

Direct costs of services

     550,720       456,114  
                

Gross margin

     393,204       313,834  

Selling, general and administrative expenses

     287,482       230,315  

Amortization of intangible assets

     146       74  

Interest income

     (3,497 )     (1,832 )
                

Income before income taxes

     109,073       85,277  

Provision for income taxes

     43,570       33,684  
                

Net income

   $ 65,503     $ 51,593  
                

Diluted net income per share

   $ .38     $ .29  

Shares:

    

Basic

     167,390       169,898  

Diluted

     173,974       176,207  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended March 31,

     2006    2005
     (Unaudited)

REVENUES:

     

Accountemps

   $ 355,577    $ 284,972

OfficeTeam

     186,196      155,941

Robert Half Technology

     84,630      67,016

Robert Half Management Resources

     120,366      105,043

Robert Half Finance & Accounting

     75,484      46,229

Protiviti

     121,671      110,747
             

Total

   $ 943,924    $ 769,948
             

GROSS MARGIN:

     

Temporary and consultant staffing

   $ 274,574    $ 222,454

Permanent placement staffing

     75,484      46,229

Risk consulting and internal audit services

     43,146      45,151
             

Total

   $ 393,204    $ 313,834
             

OPERATING INCOME:

     

Temporary and consultant staffing

   $ 76,833    $ 52,107

Permanent placement staffing

     16,900      9,532

Risk consulting and internal audit services

     11,989      21,880
             

Total

   $ 105,722    $ 83,519
             

SELECTED CASH FLOW INFORMATION:

     

Amortization of intangible assets

   $ 146    $ 74

Stock options expense

   $ 5,095    $

Depreciation expense

   $ 14,961    $ 11,907

Capital expenditures

   $ 24,312    $ 12,651

Open market repurchases of common stock (shares)

     1,225      1,555

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     March 31,
     2006    2005
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 472,652    $ 430,005

Marketable securities

   $    $ 22,580

Accounts receivable, less allowances

   $ 480,333    $ 416,687

Total assets

   $ 1,375,877    $ 1,246,919

Current liabilities

   $ 363,041    $ 324,950

Notes payable and other indebtedness, less current portion

   $ 4,168    $ 2,246

Total stockholders’ equity

   $ 999,888    $ 915,519

 

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