EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. JANUARY 29, 2008, PRESS RELEASE Robert Half International Inc. January 29, 2008, 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 FOURTH QUARTER OF 2007

MENLO PARK, California, January 29, 2008 — Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the fourth quarter ended December 31, 2007.

For the quarter ended December 31, 2007, net income was $78.8 million or $.50 per share, on revenues of $1.22 billion. Net income for the prior year’s fourth quarter was $75.4 million or $.45 per share, on revenues of $1.06 billion.

For the year ended December 31, 2007, net income was $296.2 million or $1.81 per share, on revenues of $4.65 billion. For the year ended December 31, 2006, net income was $283.2 million or $1.65 per share, on revenues of $4.01 billion.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said: “The fourth quarter of 2007 saw a continuation of the double-digit, year-over-year revenue growth we have seen for 16 consecutive quarters. International operations reported particularly strong fourth-quarter results.”

Messmer continued, “2007 capped a very successful five-year period for RHI. Companywide revenues increased from $2 billion to $4.6 billion during this time frame, a compound annual growth rate of 20 percent, the vast majority of which was organic growth. Return on equity during this period averaged 22 percent per year, growing to 29 percent in 2007.”

Robert Half International management will conduct a conference call today at 5 p.m. EST following the release. The dial-in number is 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. EST today and ending at 8 p.m. EST on February 5. The dial-in number for the replay is 800-283-4641 (+1-402-220-0851 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 December 31,
    Year
Ended December 31,
 
     2007     2006     2007     2006  
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 1,220,068     $ 1,060,234     $ 4,645,666     $ 4,013,546  

Direct costs of services

     696,447       609,184       2,667,838       2,319,293  
                                

Gross margin

     523,621       451,050       1,977,828       1,694,253  

Selling, general and administrative expenses

     393,911       331,565       1,497,957       1,243,952  

Amortization of intangible assets

     754       246       2,594       851  

Interest income

     (2,912 )     (4,252 )     (13,127 )     (16,752 )
                                

Income before income taxes

     131,868       123,491       490,404       466,202  

Provision for income taxes

     53,052       48,118       194,192       183,024  
                                

Net income

   $ 78,816     $ 75,373     $ 296,212     $ 283,178  
                                

Diluted net income per share

   $ .50     $ .45     $ 1.81     $ 1.65  

Shares:

        

Basic

     156,068       163,695       159,767       166,003  

Diluted

     158,459       168,846       163,479       171,712  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     Quarter
Ended December 31,
   Year
Ended December 31,
     2007    2006    2007    2006
     (Unaudited)    (Unaudited)     

REVENUES:

           

Accountemps

   $ 453,054    $ 389,265    $ 1,744,820    $ 1,485,105

OfficeTeam

     222,212      201,410      860,744      776,425

Robert Half Technology

     110,841      94,409      425,086      358,480

Robert Half Management Resources

     165,276      136,294      618,624      513,876

Robert Half Finance & Accounting

     117,590      86,751      444,090      336,250

Protiviti

     151,095      152,105      552,302      543,410
                           

Total

   $ 1,220,068    $ 1,060,234    $ 4,645,666    $ 4,013,546
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 357,423    $ 305,325    $ 1,359,075    $ 1,158,887

Permanent placement staffing

     117,576      86,751      444,071      336,250

Risk consulting and internal audit services

     48,622      58,974      174,682      199,116
                           

Total

   $ 523,621    $ 451,050    $ 1,977,828    $ 1,694,253
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 98,925    $ 82,465    $ 372,892    $ 314,754

Permanent placement staffing

     21,906      16,717      86,109      74,757

Risk consulting and internal audit services

     8,879      20,303      20,870      60,790
                           

Total

   $ 129,710    $ 119,485    $ 479,871    $ 450,301
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 754    $ 246    $ 2,594    $ 851

Depreciation expense

   $ 17,762    $ 15,264    $ 68,847    $ 60,234

Capital expenditures

   $ 20,185    $ 16,309    $ 83,777    $ 80,446

Open market repurchases of common stock (shares)

     3,041      819      12,202      7,892

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,
     2007    2006
     (Unaudited)     

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 310,000    $ 447,479

Accounts receivable, less allowances

   $ 593,169    $ 531,824

Total assets

   $ 1,450,298    $ 1,459,021

Current liabilities

   $ 447,952    $ 402,740

Notes payable and other indebtedness less current portion,

   $ 3,753    $ 3,831

Total stockholders’ equity

   $ 984,049    $ 1,042,671

 

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