EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. OCTOBER 19, 2006, PRESS RELEASE Robert Half International Inc. October 19, 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 THIRD QUARTER OF 2006

MENLO PARK, California, October 19, 2006--Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the third quarter ended September 30, 2006.

For the quarter ended September 30, 2006, net income was $73.6 million or $.43 per share, on revenues of $1.0 billion. Net income for the prior year’s third quarter was $64.4 million or $.37 per share, on revenues of $867.0 million.

For the nine months ended September 30, 2006, net income was $207.8 million or $1.20 per share, on revenues of $3.0 billion. For the nine months ended September 30, 2005, net income was $173.3 million or $.99 per share, on revenues of $2.5 billion.

Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc., said: “We were pleased with the company’s third-quarter financial results. We saw solid growth on a year-over-year basis and sequentially throughout our staffing operations and Protiviti.”

Messmer added, “Our permanent placement division, Robert Half Finance & Accounting, again led the way with a 55 percent increase in revenue over the prior year. Companywide revenues were up 19 percent from the third quarter of 2005, and income per share rose 17 percent from one year ago.”

Robert Half International management will conduct a conference call today at 5 p.m. EDT following the release. The dial-in number is 800-795-1259 (+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 October 27. The dial-in number for the replay is 800-839-4014 (+1-402-220-2983 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.

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.

 

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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 September 30,

   

Nine Months

Ended September 30,

 
      
     2006     2005     2006     2005  
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 1,027,563     $ 867,015     $ 2,953,312     $ 2,453,674  

Direct costs of services

     595,566       511,005       1,710,109       1,447,549  
                                

Gross margin

     431,997       356,010       1,243,203       1,006,125  

Selling, general and administrative expenses

     316,732       253,445       912,387       727,831  

Amortization of intangible assets

     231       93       605       241  

Interest income

     (4,874 )     (3,169 )     (12,500 )     (7,148 )
                                

Income before income taxes

     119,908       105,641       342,711       285,201  

Provision for income taxes

     46,261       41,202       134,906       111,940  
                                

Net income

   $ 73,647     $ 64,439     $ 207,805     $ 173,261  
                                

Diluted net income per share

   $ .43     $ .37     $ 1.20     $ .99  

Shares:

        

Basic

     165,177       166,553       166,781       167,900  

Diluted

     169,983       174,219       172,666       174,664  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended September 30,

  

Nine Months

Ended September 30,

       
     2006    2005    2006    2005
     (Unaudited)    (Unaudited)

REVENUES:

           

Accountemps

   $ 377,622    $ 316,328    $ 1,095,840    $ 905,860

OfficeTeam

     196,125      175,473      575,015      500,595

Robert Half Technology

     91,336      80,194      264,071      220,691

Robert Half Management Resources

     132,301      109,653      377,582      316,979

Robert Half Finance & Accounting

     88,463      57,156      249,499      158,683

Protiviti

     141,716      128,211      391,305      350,866
                           

Total

   $ 1,027,563    $ 867,015    $ 2,953,312    $ 2,453,674
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 293,110    $ 247,627    $ 853,562    $ 705,410

Permanent placement staffing

     88,463      57,156      249,499      158,683

Risk consulting and internal audit services

     50,424      51,227      140,142      142,032
                           

Total

   $ 431,997    $ 356,010    $ 1,243,203    $ 1,006,125
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 79,135    $ 67,399    $ 232,289    $ 177,526

Permanent placement staffing

     20,584      11,549      58,040      34,299

Risk consulting and internal audit services

     15,546      23,617      40,487      66,469
                           

Total

   $ 115,265    $ 102,565    $ 330,816    $ 278,294
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 231    $ 93    $ 605    $ 241

Stock options expense

   $ 3,904    $    $ 13,848    $

Depreciation expense

   $ 15,169    $ 13,257    $ 44,970    $ 37,439

Capital expenditures

   $ 20,623    $ 19,533    $ 64,137    $ 41,006

Open market repurchases of common stock (shares)

     4,714      1,783      7,073      6,731

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     September 30,
     2006    2005
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 431,657    $ 420,726

Accounts receivable, less allowances

   $ 536,629    $ 456,415

Total assets

   $ 1,432,243    $ 1,271,132

Current liabilities

   $ 432,652    $ 350,831

Notes payable and other indebtedness, less current portion

   $ 3,918    $ 2,715

Total stockholders’ equity

   $ 986,703    $ 914,637

 

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