EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. JULY 21, 2009, PRESS RELEASE Robert Half International Inc. July 21, 2009, 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 2009

MENLO PARK, California, July 21, 2009 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2009.

For the quarter ended June 30, 2009, net income was $5.4 million or $.03 per share, on revenues of $749.9 million. Net income for the prior year’s second quarter was $74.6 million or $.47 per share, on revenues of $1.22 billion.

For the six months ended June 30, 2009, net income was $14.2 million or $.09 per share, on revenues of $1.57 billion. For the six months ended June 30, 2008, net income was $145.4 million or $.91 per share, on revenues of $2.45 billion.

“The labor markets remained weak during the second quarter, with the U.S. unemployment rate reaching a 26-year high of 9.5 percent in June,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “While we continued to see year-over-year and sequential revenue declines, we were encouraged that the sequential declines were significantly less than those reported in the previous quarters.”

He added, “Our field offices have continued to do an excellent job of managing costs and have been opportunistic in capturing new business. We remain in solid financial condition with essentially no debt.”

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 July 28. The dial-in number for the replay is 800-839-5244 (+1-402-220-2699 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 business consulting and internal audit firm composed of experts specializing in risk, advisory and transaction 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: the global financial and economic situation; 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; the company’s ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the company’s reliance on short-term contracts for a significant percentage of its business; 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; the ability of the company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the company’s computer and communications hardware and software systems could be damaged or their service interrupted; and the possibility that the company may fail to maintain adequate financial and management controls and as a result suffer errors in its financial reporting.

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 June 30,
    Six Months
Ended June 30,
 
     2009     2008     2009     2008  
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 749,887      $ 1,224,641      $ 1,573,212      $ 2,450,631   

Direct costs of services

     484,830        708,017        1,014,427        1,423,019   
                                

Gross margin

     265,057        516,624        558,785        1,027,612   

Selling, general and administrative expenses

     255,007        393,393        532,057        787,824   

Amortization of intangible assets

     280        618        898        1,259   

Interest income

     (455     (1,506     (1,075     (3,520
                                

Income before income taxes

     10,225        124,119        26,905        242,049   

Provision for income taxes

     4,809        49,551        12,701        96,697   
                                

Net income

   $ 5,416      $ 74,568      $ 14,204      $ 145,352   
                                

Net income available to common stockholders

   $ 4,801      $ 72,293      $ 13,110      $ 141,143   
                                

Diluted net income per share

   $ .03      $ .47      $ .09      $ .91   

Shares:

        

Basic

     146,443        152,878        146,660        153,722   

Diluted

     147,044        153,892        147,092        154,818   


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

      Quarter
Ended June 30,
   Six Months
Ended June 30,
     2009     2008    2009     2008
     (Unaudited)    (Unaudited)

REVENUES:

         

Accountemps

   $ 310,872      $ 459,154    $ 640,253      $ 926,573

OfficeTeam

     135,711        218,917      281,101        438,565

Robert Half Technology

     75,260        112,612      159,024        223,818

Robert Half Management Resources

     94,490        165,012      208,540        334,984

Robert Half Finance & Accounting

     43,526        127,850      93,467        243,464

Protiviti

     90,028        141,096      190,827        283,227
                             

Total

   $ 749,887      $ 1,224,641    $ 1,573,212      $ 2,450,631
                             

GROSS MARGIN:

         

Temporary and consultant staffing

   $ 206,680      $ 349,232    $ 440,008      $ 704,596

Permanent placement staffing

     43,488        127,836      93,361        243,417

Risk consulting and internal audit services

     14,889        39,556      25,416        79,599
                             

Total

   $ 265,057      $ 516,624    $ 558,785      $ 1,027,612
                             

OPERATING INCOME:

         

Temporary and consultant staffing

   $ 25,208      $ 96,499    $ 65,045      $ 195,394

Permanent placement staffing

     (1,965     25,439      (6,198     42,576

Risk consulting and internal audit services

     (13,193     1,293      (32,119     1,818
                             

Total

   $ 10,050      $ 123,231    $ 26,728      $ 239,788
                             

SELECTED CASH FLOW INFORMATION:

         

Amortization of intangible assets

   $ 280      $ 618    $ 898      $ 1,259

Depreciation expense

   $ 16,525      $ 18,294    $ 32,788      $ 35,904

Capital expenditures

   $ 10,245      $ 22,410    $ 24,148      $ 38,837

Open market repurchases of common stock (shares)

     1,010        3,469      1,516        4,495


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     June 30,
     2009    2008
     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 385,818    $ 357,047

Accounts receivable, less allowances

   $ 374,020    $ 631,318

Total assets

   $ 1,323,811    $ 1,551,549

Current liabilities

   $ 346,637    $ 515,826

Notes payable and other indebtedness, less current portion

   $ 1,836    $ 3,633

Total stockholders’ equity

   $ 961,169    $ 1,018,026