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 SECOND QUARTER OF 2007

MENLO PARK, California, July 24, 2007—Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2007.

For the quarter ended June 30, 2007, net income was $72.7 million or $.44 per share, on revenues of $1.15 billion. Net income for the prior year’s second quarter was $68.7 million or $.39 per share, on revenues of $981.8 million.

For the six months ended June 30, 2007, net income was $143.4 million or $.86 per share, on revenues of $2.25 billion. For the six months ended June 30, 2006, net income was $134.2 million or $.77 per share, on revenues of $1.93 billion.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said: “Companywide revenues rose 17 percent from the second quarter of 2006, and income per share increased 12 percent during this same time period.

“Year-over-year and sequential revenue growth rates accelerated in each of our staffing divisions during the quarter, led by our international operations,” Messmer added. “Our permanent placement business, Robert Half Finance & Accounting, continued to perform well, with worldwide revenues increasing 34 percent from the second quarter of 2006.”

Commenting on the company’s Protiviti subsidiary, Messmer said: “Protiviti’s global suite of risk consulting services in areas such as IT applications controls, financial process effectiveness and private equity services, among others, continued to expand.”

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 July 31. The dial-in number for the replay is 1-877-856-8966 (+1-402-220-1610 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., the world’s first and largest specialized staffing firm, 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 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,

 
   2007     2006     2007     2006  
   (Unaudited)     (Unaudited)  

Net service revenues

   $ 1,149,128     $ 981,825     $ 2,246,553     $ 1,925,749  

Direct costs of services

     656,443       563,823       1,293,139       1,114,543  
                                

Gross margin

     492,685       418,002       953,414       811,206  

Selling, general and administrative expenses

     374,636       308,173       723,015       595,655  

Amortization of intangible assets

     818       228       1,092       374  

Interest income

     (3,073 )     (4,129 )     (7,090 )     (7,626 )
                                

Income before income taxes

     120,304       113,730       236,397       222,803  

Provision for income taxes

     47,578       45,075       92,964       88,645  
                                

Net income

   $ 72,726     $ 68,655     $ 143,433     $ 134,158  
                                

Diluted net income per share

   $ .44     $ .39     $ .86     $ .77  

Shares:

        

Basic

     160,781       167,799       162,302       167,595  

Diluted

     164,770       174,096       166,818       174,036  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter Ended

June 30,

  

Six Months Ended

June 30,

   2007    2006    2007    2006
   (Unaudited)    (Unaudited)

REVENUES:

           

Accountemps

   $ 431,754    $ 362,641    $ 848,047    $ 718,218

OfficeTeam

     215,751      192,694      423,369      378,890

Robert Half Technology

     105,219      88,105      204,071      172,735

Robert Half Management Resources

     151,117      124,915      296,711      245,281

Robert Half Finance & Accounting

     115,023      85,552      213,709      161,036

Protiviti

     130,264      127,918      260,646      249,589
                           

Total

   $ 1,149,128    $ 981,825    $ 2,246,553    $ 1,925,749
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 335,635    $ 285,878    $ 656,112    $ 560,452

Permanent placement staffing

     115,023      85,552      213,709      161,036

Risk consulting and internal audit services

     42,027      46,572      83,593      89,718
                           

Total

   $ 492,685    $ 418,002    $ 953,414    $ 811,206
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 90,659    $ 76,321    $ 178,456    $ 153,154

Permanent placement staffing

     23,829      20,556      43,941      37,456

Risk consulting and internal audit services

     3,561      12,952      8,002      24,941
                           

Total

   $ 118,049    $ 109,829    $ 230,399    $ 215,551
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 818    $ 228    $ 1,092    $ 374

Depreciation expense

   $ 17,331    $ 14,840    $ 33,250    $ 29,801

Capital expenditures

   $ 22,284    $ 19,202    $ 46,383    $ 43,514

Open market repurchases of common stock (shares)

     3,627      1,134      5,659      2,359

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     June 30,
   2007    2006
   (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 389,600    $ 528,457

Accounts receivable, less allowances

   $ 591,573    $ 509,509

Total assets

   $ 1,497,900    $ 1,483,129

Current liabilities

   $ 476,333    $ 407,335

Notes payable and other indebtedness, less current portion

   $ 3,663    $ 4,206

Total stockholders’ equity

   $ 1,005,563    $ 1,062,643

 

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