EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. OCTOBER 18, 2007, PRESS RELEASE Robert Half International Inc. October 18, 2007, 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 THIRD QUARTER OF 2007

MENLO PARK, California, October 18, 2007 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the third quarter ended September 30, 2007.

For the quarter ended September 30, 2007, net income was $74.0 million or $.46 per share, on revenues of $1.18 billion. Net income for the prior year’s third quarter was $73.6 million or $.43 per share, on revenues of $1.03 billion.

For the nine months ended September 30, 2007, net income was $217.4 million or $1.32 per share, on revenues of $3.43 billion. For the nine months ended September 30, 2006, net income was $207.8 million or $1.20 per share, on revenues of $2.95 billion.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said: “Our staffing operations reported strong revenue growth compared to last year, led by our international operations. Our accounting and finance staffing divisions, including permanent placement, continued to perform well.”

Commenting on the company’s Protiviti subsidiary, Messmer said: “Protiviti posted solid sequential revenue gains and benefited from expanded consulting revenues in areas such as IT asset management, forensic investigations and new internal audit engagements.”

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 October 25. The dial-in number for the replay is 1-800-753-9146 (+1-402-220-2705 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.

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 September 30,
    Nine Months
Ended September 30,
 
     2007     2006     2007     2006  
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 1,179,045     $ 1,027,563     $ 3,425,598     $ 2,953,312  

Direct costs of services

     678,252       595,566       1,971,391       1,710,109  
                                

Gross margin

     500,793       431,997       1,454,207       1,243,203  

Selling, general and administrative expenses

     381,031       316,732       1,104,046       912,387  

Amortization of intangible assets

     748       231       1,840       605  

Interest income

     (3,125 )     (4,874 )     (10,215 )     (12,500 )
                                

Income before income taxes

     122,139       119,908       358,536       342,711  

Provision for income taxes

     48,176       46,261       141,140       134,906  
                                

Net income

   $ 73,963     $ 73,647     $ 217,396     $ 207,805  
                                

Diluted net income per share

   $ .46     $ .43     $ 1.32     $ 1.20  

Shares:

        

Basic

     158,480       165,177       161,014       166,781  

Diluted

     161,903       169,983       165,166       172,666  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     Quarter
Ended September 30,
   Nine Months
Ended September 30,
     2007    2006    2007    2006
     (Unaudited)    (Unaudited)

REVENUES:

           

Accountemps

   $ 443,719    $ 377,622    $ 1,291,766    $ 1,095,840

OfficeTeam

     215,163      196,125      638,532      575,015

Robert Half Technology

     110,174      91,336      314,245      264,071

Robert Half Management Resources

     156,637      132,301      453,348      377,582

Robert Half Finance & Accounting

     112,791      88,463      326,500      249,499

Protiviti

     140,561      141,716      401,207      391,305
                           

Total

   $ 1,179,045    $ 1,027,563    $ 3,425,598    $ 2,953,312
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 345,540    $ 293,110    $ 1,001,652    $ 853,562

Permanent placement staffing

     112,786      88,463      326,495      249,499

Risk consulting and internal audit services

     42,467      50,424      126,060      140,142
                           

Total

   $ 500,793    $ 431,997    $ 1,454,207    $ 1,243,203
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 95,511    $ 79,135    $ 273,968    $ 232,289

Permanent placement staffing

     20,262      20,584      64,202      58,040

Risk consulting and internal audit services

     3,989      15,546      11,991      40,487
                           

Total

   $ 119,762    $ 115,265    $ 350,161    $ 330,816
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 748    $ 231    $ 1,840    $ 605

Depreciation expense

   $ 17,835    $ 15,169    $ 51,085    $ 44,970

Capital expenditures

   $ 17,209    $ 20,623    $ 63,592    $ 64,137

Open market repurchases of common stock (shares)

     3,502      4,714      9,161      7,073

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     September 30,
     2007    2006
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 328,657    $ 431,657

Accounts receivable, less allowances

   $ 628,254    $ 536,629

Total assets

   $ 1,487,523    $ 1,432,243

Current liabilities

   $ 488,522    $ 432,652

Notes payable and other indebtedness, less current portion

   $ 3,748    $ 3,918

Total stockholders’ equity

   $ 983,242    $ 986,703

 

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