EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. JULY 25, 2006, PRESS RELEASE Robert Half International Inc. July 25, 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 SECOND QUARTER OF 2006

MENLO PARK, California, July 25, 2006--Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the second quarter ended June 30, 2006.

For the quarter ended June 30, 2006, net income was $68.7 million or $.39 per share, on revenues of $981.8 million. Net income for the prior year’s second quarter was $57.2 million or $.33 per share, on revenues of $816.7 million.

For the six months ended June 30, 2006, net income was $134.2 million or $.77 per share, on revenues of $1.9 billion. For the six months ended June 30, 2005, net income was $108.8 million or $.62 per share, on revenues of $1.6 billion.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International Inc., said: “We reported record revenue and earnings results during the quarter. Revenues and income per share increased 20 percent and 19 percent, respectively, over the same period last year.

“The strength during the quarter was broad-based as the company achieved double-digit, year-over-year revenue gains in each of our staffing divisions and Protiviti,” Messmer said. “We were particularly pleased with the performance of our permanent placement division, Robert Half Finance & Accounting, which saw a 55 percent increase in revenues versus last year.”

Messmer noted that the company’s Protiviti subsidiary also had a solid quarter led by revenue gains in each of its international locations, particularly in Asia.

Robert Half International management will conduct a conference call today at 5 p.m. EDT following the release. The dial-in number is 800-540-0559 (+1-785-832-1508 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 August 1. The dial-in number for the replay is 800-723-1517 (+1-402-220-2659 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 400 locations worldwide.

 

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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 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 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,

 
      
     2006     2005     2006     2005  
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 981,825     $ 816,711     $ 1,925,749     $ 1,586,659  

Direct costs of services

     563,823       480,430       1,114,543       936,544  
                                

Gross margin

     418,002       336,281       811,206       650,115  

Selling, general and administrative expenses

     308,173       244,071       595,655       474,386  

Amortization of intangible assets

     228       74       374       148  

Interest income

     (4,129 )     (2,147 )     (7,626 )     (3,979 )
                                

Income before income taxes

     113,730       94,283       222,803       179,560  

Provision for income taxes

     45,075       37,054       88,645       70,738  
                                

Net income

   $ 68,655     $ 57,229     $ 134,158     $ 108,822  
                                

Diluted net income per share

   $ .39     $ .33     $ .77     $ .62  

Shares:

        

Basic

     167,799       167,285       167,595       168,585  

Diluted

     174,096       172,387       174,036       174,304  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended June 30,

  

Six Months

Ended June 30,

       
     2006    2005    2006    2005
     (Unaudited)    (Unaudited)

REVENUES:

           

Accountemps

   $ 362,641    $ 304,560    $ 718,218    $ 589,532

OfficeTeam

     192,694      169,181      378,890      325,122

Robert Half Technology

     88,105      73,481      172,735      140,497

Robert Half Management Resources

     124,915      102,283      245,281      207,326

Robert Half Finance & Accounting

     85,552      55,298      161,036      101,527

Protiviti

     127,918      111,908      249,589      222,655
                           

Total

   $ 981,825    $ 816,711    $ 1,925,749    $ 1,586,659
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 285,878    $ 235,329    $ 560,452    $ 457,783

Permanent placement staffing

     85,552      55,298      161,036      101,527

Risk consulting and internal audit services

     46,572      45,654      89,718      90,805
                           

Total

   $ 418,002    $ 336,281    $ 811,206    $ 650,115
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 76,321    $ 58,020    $ 153,154    $ 110,127

Permanent placement staffing

     20,556      13,218      37,456      22,750

Risk consulting and internal audit services

     12,952      20,972      24,941      42,852
                           

Total

   $ 109,829    $ 92,210    $ 215,551    $ 175,729
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 228    $ 74    $ 374    $ 148

Stock options expense

   $ 4,849    $    $ 9,944    $

Depreciation expense

   $ 14,840    $ 11,832    $ 29,801    $ 23,538

Capital expenditures

   $ 19,202    $ 8,822    $ 43,514    $ 21,473

Open market repurchases of common stock (shares)

     1,134      3,393      2,359      4,948

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     June 30,
     2006    2005
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 528,457    $ 441,057

Accounts receivable, less allowances

   $ 509,509    $ 417,248

Total assets

   $ 1,483,129    $ 1,231,444

Current liabilities

   $ 407,335    $ 347,319

Notes payable and other indebtedness, less current portion

   $ 4,206    $ 2,753

Total stockholders’ equity

   $ 1,062,643    $ 877,548

 

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