EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. OCTOBER 22, 2008, PRESS RELEASE Robert Half International Inc. October 22, 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 REVENUES AND EARNINGS FOR THE THIRD QUARTER OF 2008

MENLO PARK, California, October 22, 2008 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the third quarter ended September 30, 2008.

For the quarter ended September 30, 2008, net income was $65.8 million or $.43 per share, on revenues of $1.16 billion. Net income for the prior year’s third quarter was $74.0 million or $.46 per share, on revenues of $1.18 billion.

For the nine months ended September 30, 2008, net income was $211.2 million or $1.37 per share, on revenues of $3.61 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.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International Inc., said: “Our third-quarter results clearly were impacted by the turmoil in the global financial markets. Revenues were down 2 percent from the third quarter of last year and income per share declined 6 percent during this period. Clients became increasingly cautious with their hiring actions as the quarter progressed.”

Messmer pointed out that the quarter was not without its bright spots. “Revenues from our international staffing operations, which make up 30 percent of total staffing revenue, grew 15 percent year over year on a constant-currency basis,” he said. “Our technology division also reported positive year-over-year revenue growth.”

Messmer noted that the company’s return on equity was 26 percent for the third quarter and has averaged 26 percent for the past five years.

Robert Half International management will conduct a conference call today at 5 p.m. EDT 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. EDT today and ending at 8 p.m. EDT on October 29. The dial-in number for the replay is 800-283-8217 (+1-402-220-0868 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. It also is the parent company of Protiviti®, a global consulting and internal audit firm composed of experts in risk and advisory services. Robert Half’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.

Robert Half International 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


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

 

     Quarter
Ended September 30,
    Nine Months
Ended September 30,
 
     2008     2007     2008     2007  
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 1,160,086     $ 1,179,045     $ 3,610,717     $ 3,425,598  

Direct costs of services

     676,513       678,252       2,099,532       1,971,391  
                                

Gross margin

     483,573       500,793       1,511,185       1,454,207  

Selling, general and administrative expenses

     374,120       381,031       1,161,944       1,104,046  

Amortization of intangible assets

     618       748       1,877       1,840  

Interest income

     (1,318 )     (3,125 )     (4,838 )     (10,215 )
                                

Income before income taxes

     110,153       122,139       352,202       358,536  

Provision for income taxes

     44,332       48,176       141,029       141,140  
                                

Net income

   $ 65,821     $ 73,963     $ 211,173     $ 217,396  
                                

Diluted net income per share

   $ .43     $ .46     $ 1.37     $ 1.32  

Shares:

        

Basic

     150,839       158,480       152,754       161,014  

Diluted

     152,786       161,903       154,561       165,166  


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    Quarter
Ended September 30,
  Nine Months
Ended September 30,
    2008   2007   2008   2007
    (Unaudited)   (Unaudited)

REVENUES:

       

Accountemps

  $ 434,660   $ 443,719   $ 1,361,233   $ 1,291,766

OfficeTeam

    209,112     215,163     647,677     638,532

Robert Half Technology

    112,299     110,174     336,117     314,245

Robert Half Management Resources

    156,097     156,637     491,081     453,348

Robert Half Finance & Accounting

    108,457     112,791     351,921     326,500

Protiviti

    139,461     140,561     422,688     401,207
                       

Total

  $ 1,160,086   $ 1,179,045   $ 3,610,717   $ 3,425,598
                       

GROSS MARGIN:

       

Temporary and consultant staffing

  $ 334,389   $ 345,540   $ 1,038,985   $ 1,001,652

Permanent placement staffing

    108,412     112,786     351,829     326,495

Risk consulting and internal audit services

    40,772     42,467     120,371     126,060
                       

Total

  $ 483,573   $ 500,793   $ 1,511,185   $ 1,454,207
                       

OPERATING INCOME:

       

Temporary and consultant staffing

  $ 90,148   $ 95,511   $ 285,542   $ 273,968

Permanent placement staffing

    15,317     20,262     57,893     64,202

Risk consulting and internal audit services

    3,988     3,989     5,806     11,991
                       

Total

  $ 109,453   $ 119,762   $ 349,241   $ 350,161
                       

SELECTED CASH FLOW INFORMATION:

       

Amortization of intangible assets

  $ 618   $ 748   $ 1,877   $ 1,840

Depreciation expense

  $ 17,981   $ 17,835   $ 53,885   $ 51,085

Capital expenditures

  $ 16,650   $ 17,209   $ 55,487   $ 63,592

Open market repurchases of common stock (shares)

    863     3,502     5,358     9,161


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     September 30,
     2008    2007
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 373,692    $ 328,657

Accounts receivable, less allowances

   $ 586,762    $ 628,254

Total assets

   $ 1,523,950    $ 1,487,523

Current liabilities

   $ 467,495    $ 488,522

Notes payable and other indebtedness, less current portion

   $ 3,541    $ 3,748

Total stockholders’ equity

   $ 1,039,050    $ 983,242