EX-99.1 2 dex991.htm PRESS RELEASE 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 FIRST QUARTER OF 2007

MENLO PARK, California, April 19, 2007 -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the first quarter ended March 31, 2007.

For the quarter ended March 31, 2007, net income was $70.7 million or $.42 per share, on revenues of $1.1 billion. Net income for the prior year’s first quarter was $65.5 million or $.38 per share, on revenues of $943.9 million.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International Inc., said: “Revenues and income per share increased 16 percent and 11 percent, respectively, from the first quarter of 2006. In our staffing divisions, we saw a continuation of the broad-based revenue growth that we have seen for several quarters.

“The financial divisions continued to perform well, particularly our permanent placement business, Robert Half Finance & Accounting,” he said. “International staffing operations also had a strong quarter.”

Messmer added, “Protiviti, our internal audit and risk consulting subsidiary, expanded its client base and service offerings during the quarter. Revenues for Protiviti grew 7 percent on a year-over-year basis, led by its international operations.” Protiviti, which celebrates its fifth anniversary in May, is 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. EDT following the release. The dial-in number is 1-800-862-9098 (+1-785-424-1051 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 April 26. The dial-in number for the replay is 1-800-283-8520 (+1-402-220-0870 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. 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”,

 

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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,

 
      2007     2006  
     (Unaudited)  

Net service revenues

   $ 1,097,425     $ 943,924  

Direct costs of services

     636,696       550,720  
                

Gross margin

     460,729       393,204  

Selling, general and administrative expenses

     348,379       287,482  

Amortization of intangible assets

     274       146  

Interest income

     (4,017 )     (3,497 )
                

Income before income taxes

     116,093       109,073  

Provision for income taxes

     45,386       43,570  
                

Net income

   $ 70,707     $ 65,503  
                

Diluted net income per share

   $ .42     $ .38  

Shares:

    

Basic

     163,841       167,390  

Diluted

     168,883       173,974  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     

Quarter

Ended March 31,

      2007    2006
     (Unaudited)

REVENUES:

     

Accountemps

   $ 416,293    $ 355,577

OfficeTeam

     207,618      186,196

Robert Half Technology

     98,852      84,630

Robert Half Management Resources

     145,594      120,366

Robert Half Finance & Accounting

     98,686      75,484

Protiviti

     130,382      121,671
             

Total

   $ 1,097,425    $ 943,924
             

GROSS MARGIN:

     

Temporary and consultant staffing

   $ 320,477    $ 274,574

Permanent placement staffing

     98,686      75,484

Risk consulting and internal audit services

     41,566      43,146
             

Total

   $ 460,729    $ 393,204
             

OPERATING INCOME:

     

Temporary and consultant staffing

   $ 87,797    $ 76,833

Permanent placement staffing

     20,112      16,900

Risk consulting and internal audit services

     4,441      11,989
             

Total

   $ 112,350    $ 105,722
             

SELECTED CASH FLOW INFORMATION:

     

Amortization of intangible assets

   $ 274    $ 146

Depreciation expense

   $ 15,919    $ 14,961

Capital expenditures

   $ 24,099    $ 24,312

Open market repurchases of common stock (shares)

     2,032      1,225

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     March 31,
     2007    2006
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 449,902    $ 472,652

Accounts receivable, less allowances

   $ 561,112    $ 480,333

Total assets

   $ 1,489,365    $ 1,375,877

Current liabilities

   $ 430,024    $ 363,041

Notes payable and other indebtedness, less current portion

   $ 3,825    $ 4,168

Total stockholders’ equity

   $ 1,044,603    $ 999,888

 

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