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Robert Half Reports Third-Quarter Financial Results(Canada Newswire Via Acquire Media NewsEdge) MENLO PARK, Calif., Oct. 21, 2014 /CNW/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the third quarter ended September 30, 2014. For the quarter ended September 30, 2014, net income was $85.2 million, or $.63 per share, on revenues of $1.22 billion. Net income for the prior year's third quarter was $66.4 million, or $.48 per share, on revenues of $1.08 billion. For the nine months ended September 30, 2014, net income was $221.9 million, or $1.63 per share, on revenues of $3.47 billion. For the nine months ended September 30, 2013, net income was $185.3 million, or $1.35 per share, on revenues of $3.16 billion. "Demand for our staffing and consulting services accelerated in the third quarter, with all lines of business reporting double-digit, year-over-year revenue gains," said Harold M. Messmer, Jr., chairman and CEO of Robert Half. "The strength in our operations was broad-based and included both U.S. and international locations." Messmer added, "This was Robert Half's 18th consecutive quarter of double-digit net income and earnings-per-share percentage growth on a year-over-year basis. Return on equity, on an unlevered basis, was 35 percent for the quarter." Robert Half management will conduct a conference call today at 5 p.m. EDT. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today's conference call is 877-814-0475 (+1-706-643-9224 outside the United States). The password is "Robert Half." 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. EST on November 21. The dial-in number for the replay is 855-859-2056 (+1-404-537-3406 outside the United States). To access the replay, enter conference ID# 4459635. The conference call also will be archived in audio format on the company's website at www.roberthalf.com. Founded in 1948, Robert Half, 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®, a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. The company's specialized staffing divisions include Accountemps®, Robert Half® Finance & Accounting and Robert Half® Management Resources, for temporary, full-time and senior-level 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 interactive, design, marketing, advertising and public relations professionals. Robert Half has operations in more than 400 locations worldwide. Certain information contained in this press release and its attachments 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 additional costs the company will incur as a result of healthcare reform legislation may adversely affect the company's profit margins or the demand for the company's services; 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.roberthalf.com/investor-center. ATTACHED: Summary of Operations Supplemental Financial Information Non-GAAP Financial Measures ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUMMARY OF OPERATIONS (in thousands, except per share amounts) Quarter Nine Months Ended September 30, Ended September 30, 2014 2013 2014 2013 Net service revenues (Unaudited) (Unaudited) $1,224,308 $1,075,119 $3,473,564 $3,162,031 Direct costs of services 719,088 637,641 2,051,405 1,882,155 Gross margin 505,220 437,478 1,422,159 1,279,876 Selling, general and administrative expenses 366,967 333,565 1,058,144 985,664 Amortization of intangible assets ? 433 557 1,300 Interest income (108) (233) (570) (773) Income before income taxes 138,361 103,713 364,028 293,685 Provision for income taxes 53,177 37,355 142,153 108,375 Net income $ 85,184 $ 66,358 $ 221,875 $ 185,310 Net income available to common Stockholders - diluted $ 85,184 $ 66,358 $ 221,875 $ 185,307 Diluted net income per share $ .63 $ .48 $ 1.63 $ 1.35 Shares: Basic 134,054 135,727 134,690 136,469 Diluted 135,366 137,241 135,740 137,759 ROBERT HALF INTERNATIONALINC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) Quarter Ended September 30, Nine Months Ended September 30, 2014 2013 2014 2013 (Unaudited) (Unaudited) REVENUES: Accountemps $ 416,413 34.0% $ 378,117 35.2% $1,202,433 34.6% $1,133,246 35.8% OfficeTeam 237,723 19.4% 208,360 19.4% 675,288 19.5% 617,680 19.5% Robert Half Technology 150,166 12.3% 135,275 12.6% 424,459 12.2% 388,027 12.3% Robert Half Management Resources 149,923 12.2% 126,134 11.7% 420,653 12.1% 374,424 11.9% Robert Half Finance & Accounting 102,345 8.4% 88,222 8.2% 297,797 8.6% 261,946 8.3% Protiviti 167,738 13.7% 139,011 12.9% 452,934 13.0% 386,708 12.2% Total $1,224,308 100.0% $1,075,119 100.0% $3,473,564 100.0% $3,162,031 100.0% GROSS MARGIN: Temporary and consultant staffing $ 351,791 36.9% $ 306,950 36.2% $ 993,714 36.5% $ 908,284 36.1% Permanent placement staffing 102,314 100.0% 88,178 100.0% 297,697 100.0% 261,836 100.0% Risk consulting and internal audit services 51,115 30.5% 42,350 30.5% 130,748 28.9% 109,756 28.4% Total $ 505,220 41.3% $ 437,478 40.7% $1,422,159 40.9% $1,279,876 40.5% OPERATING INCOME: Temporary and consultant staffing $ 97,660 10.2% $ 76,532 9.0% $ 263,901 9.7% $ 226,293 9.0% Permanent placement staffing 21,380 20.9% 13,691 15.5% 61,103 20.5% 41,753 15.9% Risk consulting and internal audit services 19,213 11.5% 13,690 9.8% 39,011 8.6% 26,166 6.8% Total $ 138,253 11.3% $ 103,913 9.7% $ 364,015 10.5% $ 294,212 9.3% SELECTED CASH FLOW INFORMATION: Amortization of intangible assets $ ? $ 433 $ 557 $ 1,300 Depreciation expense $ 12,107 $ 11,669 $ 36,170 $ 34,995 Capital expenditures $ 13,122 $ 11,764 $ 36,207 $ 30,868 Open market repurchases of common stock (shares) 1,237 753 2,543 2,779 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) September 30, 2014 2013 (Unaudited) SELECTED BALANCE SHEET INFORMATION: Cash and cash equivalents $ 290,876 $ 279,747 Accounts receivable, less allowances $ 657,105 $ 566,077 Total assets $1,627,013 $1,474,704 Current liabilities $ 623,905 $ 551,928 Notes payable and other indebtedness, less current portion $ 1,196 $ 1,333 Total stockholders' equity $ 972,583 $ 898,784 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES The financial results of Robert Half International Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission ("SEC"). To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with revenue growth rates derived from non-GAAP revenue amounts. Variations in the Company's financial results include the impact of changes in foreign currency exchange rates and billing days. The Company provides "same billing days and constant currency" revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company's lines of business on both a reported basis and also on a same-day, constant-currency basis for global, U.S. and international operations. This information is presented for each of the six most recent quarters. The Company has provided this data because management believes it better reflects the Company's actual revenue growth rates and aids in evaluating revenue trends over time. The Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days and constant currency exchange rates. The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to actual revenue growth derived from revenue amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages. ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATES (%) (UNAUDITED): Year-Over-Year Growth Rates (As Reported) Non-GAAP Year-Over-Year Growth Rates (Same Billing Days and Constant Currency) 2013 2014 2013 2014 Global Q2 Q3 Q4 Q1 Q2 Q3 Q2 Q3 Q4 Q1 Q2 Q3 Accountemps -0.7 -0.8 -0.4 1.7 6.5 10.1 -1.3 -2.0 -0.3 1.4 6.5 9.8 OfficeTeam 2.4 2.5 3.0 4.7 9.1 14.1 1.6 0.8 2.8 4.0 9.0 14.0 RH Technology 10.2 11.8 14.1 9.3 7.8 11.0 9.5 10.8 14.9 9.5 8.5 10.9 RH Management Resources -1.2 -0.2 0.7 5.6 12.4 18.9 -1.5 -0.9 1.1 5.3 12.2 18.4 Temporary and consultant staffing 1.6 1.9 2.7 4.1 8.2 12.5 0.9 0.7 2.9 3.8 8.3 12.3 Permanent placement staffing 1.4 7.9 6.6 11.1 13.8 16.0 1.2 7.9 7.8 11.6 14.2 15.7 Total staffing 1.6 2.5 3.1 4.8 8.7 12.9 1.0 1.3 3.3 4.5 8.9 12.6 Protiviti 18.7 16.3 18.0 14.8 15.5 20.7 20.3 16.9 15.6 14.1 14.4 18.3 Total 3.4 4.1 4.8 5.9 9.6 13.9 3.2 3.3 4.9 5.7 9.6 13.4 United States Temporary and consultant staffing 4.0 4.5 5.0 5.9 9.3 13.2 3.3 3.3 5.2 5.4 9.8 13.0 Permanent placement staffing 10.3 13.8 11.0 12.6 15.8 21.8 9.6 12.5 11.3 12.1 16.3 21.6 Total staffing 4.5 5.2 5.4 6.4 9.8 13.9 3.8 4.0 5.6 5.9 10.3 13.7 Protiviti 23.3 22.1 19.6 19.0 19.0 22.0 24.3 21.7 16.5 18.0 18.4 19.9 Total 6.6 7.2 7.1 7.9 11.0 15.0 6.2 6.3 7.1 7.5 11.4 14.6 International Temporary and consultant staffing -5.8 -5.9 -4.2 -1.2 4.6 10.4 -6.2 -7.2 -4.2 -1.0 3.3 9.9 Permanent placement staffing -10.8 -0.8 0.0 8.6 10.6 6.3 -10.1 1.0 2.7 10.8 10.7 5.6 Total staffing -6.5 -5.2 -3.6 0.1 5.4 9.8 -6.8 -6.0 -3.3 0.6 4.4 9.3 Protiviti 4.2 -3.8 12.0 0.4 2.4 14.6 7.9 0.2 12.5 0.8 -0.2 11.0 Total -5.5 -5.1 -2.0 0.1 5.1 10.3 -5.2 -5.3 -1.4 0.6 3.9 9.5 The non-GAAP financial measures included in the table above adjust for the following items: Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. In order to calculate "Constant Currency" revenue growth rates, as-reported amounts are retranslated using foreign exchange rates from the prior year's comparable period. Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates a global, weighted-average number of billing days for each reporting period based upon input from all countries and all lines of business. In order to remove the fluctuations caused by comparable periods having different billing days, the company calculates "same billing day" revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period, to arrive at a "per billing day" amount. The "same billing day" growth rates are then calculated based upon the "per billing day" amounts. The term "same billing days and constant currency" means that the impact of different billing days has been removed from constant currency calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein on Pages 10-12. ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): Year-Over-Year Revenue Growth – GLOBAL Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Accountemps As Reported -0.7 -0.8 -0.4 1.7 6.5 10.1 Billing Days Impact -0.6 -1.1 0.2 -0.5 0.4 -0.1 Currency Impact 0.0 -0.1 -0.1 0.2 -0.4 -0.2 Same Billing Days and Constant Currency -1.3 -2.0 -0.3 1.4 6.5 9.8 OfficeTeam As Reported 2.4 2.5 3.0 4.7 9.1 14.1 Billing Days Impact -0.7 -1.2 0.2 -0.5 0.5 -0.2 Currency Impact -0.1 -0.5 -0.4 -0.2 -0.6 0.1 Same Billing Days and Constant Currency 1.6 0.8 2.8 4.0 9.0 14.0 Robert Half Technology As Reported 10.2 11.8 14.1 9.3 7.8 11.0 Billing Days Impact -0.8 -1.4 0.3 -0.5 0.5 -0.2 Currency Impact 0.1 0.4 0.5 0.7 0.2 0.1 Same Billing Days and Constant Currency 9.5 10.8 14.9 9.5 8.5 10.9 Robert Half Management Resources As Reported -1.2 -0.2 0.7 5.6 12.4 18.9 Billing Days Impact -0.8 -1.1 0.2 -0.4 0.6 -0.2 Currency Impact 0.5 0.4 0.2 0.1 -0.8 -0.3 Same Billing Days and Constant Currency -1.5 -0.9 1.1 5.3 12.2 18.4 Temporary and consultant staffing As Reported 1.6 1.9 2.7 4.1 8.2 12.5 Billing Days Impact -0.8 -1.2 0.3 -0.5 0.5 -0.1 Currency Impact 0.1 0.0 -0.1 0.2 -0.4 -0.1 Same Billing Days and Constant Currency 0.9 0.7 2.9 3.8 8.3 12.3 Permanent placement staffing As Reported 1.4 7.9 6.6 11.1 13.8 16.0 Billing Days Impact -0.7 -1.2 0.2 -0.5 0.6 -0.1 Currency Impact 0.5 1.2 1.0 1.0 -0.2 -0.2 Same Billing Days and Constant Currency 1.2 7.9 7.8 11.6 14.2 15.7 Total staffing As Reported 1.6 2.5 3.1 4.8 8.7 12.9 Billing Days Impact -0.7 -1.3 0.2 -0.5 0.6 -0.2 Currency Impact 0.1 0.1 0.0 0.2 -0.4 -0.1 Same Billing Days and Constant Currency 1.0 1.3 3.3 4.5 8.9 12.6 Protiviti As Reported 18.7 16.3 18.0 14.8 15.5 20.7 Billing Days Impact 0.9 -0.4 -3.2 -1.0 -0.7 -2.1 Currency Impact 0.7 1.0 0.8 0.3 -0.4 -0.3 Same Billing Days and Constant Currency 20.3 16.9 15.6 14.1 14.4 18.3 Total As Reported 3.4 4.1 4.8 5.9 9.6 13.9 Billing Days Impact -0.4 -1.0 0.0 -0.4 0.4 -0.4 Currency Impact 0.2 0.2 0.1 0.2 -0.4 -0.1 Same Billing Days and Constant Currency 3.2 3.3 4.9 5.7 9.6 13.4 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): Year-Over-Year Revenue Growth – UNITED STATES Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Temporary and consultant staffing As Reported 4.0 4.5 5.0 5.9 9.3 13.2 Billing Days Impact -0.7 -1.2 0.2 -0.5 0.5 -0.2 Currency Impact ? ? ? ? ? ? Same Billing Days and Constant Currency 3.3 3.3 5.2 5.4 9.8 13.0 Permanent placement staffing As Reported 10.3 13.8 11.0 12.6 15.8 21.8 Billing Days Impact -0.7 -1.3 0.3 -0.5 0.5 -0.2 Currency Impact ? ? ? ? ? ? Same Billing Days and Constant Currency 9.6 12.5 11.3 12.1 16.3 21.6 Total staffing As Reported 4.5 5.2 5.4 6.4 9.8 13.9 Billing Days Impact -0.7 -1.2 0.2 -0.5 0.5 -0.2 Currency Impact ? ? ? ? ? ? Same Billing Days and Constant Currency 3.8 4.0 5.6 5.9 10.3 13.7 Protiviti As Reported 23.3 22.1 19.6 19.0 19.0 22.0 Billing Days Impact 1.0 -0.4 -3.1 -1.0 -0.6 -2.1 Currency Impact - - - ? ? ? Same Billing Days and Constant Currency 24.3 21.7 16.5 18.0 18.4 19.9 Total As Reported 6.6 7.2 7.1 7.9 11.0 15.0 Billing Days Impact -0.4 -0.9 0.0 -0.4 0.4 -0.4 Currency Impact - - - ? ? ? Same Billing Days and Constant Currency 6.2 6.3 7.1 7.5 11.4 14.6 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES NON-GAAP FINANCIAL MEASURES REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED): Year-Over-Year Revenue Growth – INTERNATIONAL Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Temporary and consultant staffing As Reported -5.8 -5.9 -4.2 -1.2 4.6 10.4 Billing Days Impact -0.7 -1.2 0.2 -0.4 0.4 -0.2 Currency Impact 0.3 -0.1 -0.2 0.6 -1.7 -0.3 Same Billing Days and Constant Currency -6.2 -7.2 -4.2 -1.0 3.3 9.9 Permanent placement staffing As Reported -10.8 -0.8 0.0 8.6 10.6 6.3 Billing Days Impact -0.6 -1.2 0.3 -0.5 0.5 -0.2 Currency Impact 1.3 3.0 2.4 2.7 -0.4 -0.5 Same Billing Days and Constant Currency -10.1 1.0 2.7 10.8 10.7 5.6 Total staffing As Reported -6.5 -5.2 -3.6 0.1 5.4 9.8 Billing Days Impact -0.7 -1.1 0.1 -0.4 0.5 -0.2 Currency Impact 0.4 0.3 0.2 0.9 -1.5 -0.3 Same Billing Days and Constant Currency -6.8 -6.0 -3.3 0.6 4.4 9.3 Protiviti As Reported 4.2 -3.8 12.0 0.4 2.4 14.6 Billing Days Impact 0.8 -0.3 -3.0 -0.8 -0.6 -2.0 Currency Impact 2.9 4.3 3.5 1.2 -2.0 -1.6 Same Billing Days and Constant Currency 7.9 0.2 12.5 0.8 -0.2 11.0 Total As Reported -5.5 -5.1 -2.0 0.1 5.1 10.3 Billing Days Impact -0.4 -0.9 0.1 -0.5 0.4 -0.3 Currency Impact 0.7 0.7 0.5 1.0 -1.6 -0.5 Same Billing Days and Constant Currency -5.2 -5.3 -1.4 0.6 3.9 9.5 To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/robert-half-reports-third-quarter-financial-results-133118164.html SOURCE Robert Half |