ROBERT HALF INTERNATIONAL, INC 
By MENLO PARK, Calif., Jan. 30, 2014 /PRNewswire/ -- Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter and year ended December 31, 2013.
For the quarter ended December 31, 2013, net income was $66.9 million, or $.49 per share, on revenues of $1.08 billion. Net income for the prior year's fourth quarter was $58.6 million, or $.42 per share, on revenues of $1.03 billion.
For the year ended December 31, 2013, net income was $252.2 million, or $1.83 per share, on revenues of $4.25 billion. For the year ended December 31, 2012, net income was $209.9 million, or $1.50 per share, on revenues of $4.11 billion.
"We saw continued strength in our staffing operations in the fourth quarter, during which growth rates accelerated for substantially all of Robert Half's specialized staffing divisions," said Harold M. Messmer, Jr., chairman and CEO of Robert Half. "Our technology staffing as well as our permanent placement divisions reported the strongest staffing revenue gains compared to the year-ago quarter. Protiviti also reported another excellent quarter, with revenue up 18 percent year over year."
Messmer added, "This was Robert Half's 15(th) consecutive quarter of double-digit net income and earnings per share growth on a year-over-year basis; return on equity was 29 percent for the quarter. Earnings per share of $1.83 for 2013 is the highest ever reported by the company."
Robert Half management will conduct a conference call today at 5 p.m. EST. The dial-in number is 877-814-0475 (+1-706-643-9224 outside the United States). The password to access the call is "Robert Half." 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 28. 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# 19884932. 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 and internal audit firm composed of experts in risk, advisory and transaction services. 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 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 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 Year
Ended December 31, Ended December 31,
------------------ ------------------
2013 2012 2013 2012
---- ---- ---- ----
Net service revenues (Unaudited) (Unaudited)
$1,083,864 $1,034,213 $4,245,895 $4,111,213
Gross margin 443,216 416,425 1,723,092 1,649,060
Selling, general and
administrative expenses 339,151 319,302 1,324,815 1,305,614
Amortization of intangible
assets 400 211 1,700 398
Interest income (229) (330) (1,002) (1,197)
---- ---- ------ ------
Income before income taxes 103,894 97,242 397,579 344,245
Provision for income taxes 37,009 38,623 145,384 134,303
------ ------ ------- -------
Net income $66,885 $58,619 $252,195 $209,942
======= ======= ======== ========
Net income available to
common $66,885 $58,322 $252,192 $208,867
stockholders - diluted
Diluted net income per
share $.49 $.42 $1.83 $1.50
Shares:
Basic 135,219 136,929 136,153 138,201
Diluted 136,813 138,439 137,589 139,409
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
Quarter Year
Ended December 31, Ended December 31,
------------------ ------------------
2013 2012 2013 2012
---- ---- ---- ----
(Unaudited) (Unaudited)
REVENUES:
Accountemps $377,735 34.8% $379,228 36.7% $1,510,981 35.6% $1,526,934 37.2%
OfficeTeam 214,717 19.8% 208,385 20.1% 832,397 19.6% 814,858 19.8%
Robert Half
Technology 137,224 12.7% 120,217 11.6% 525,251 12.4% 476,458 11.6%
Robert Half
Management
Resources 126,787 11.7% 125,869 12.2% 501,211 11.8% 506,036 12.3%
Robert Half
Finance &
Accounting 85,769 7.9% 80,438 7.8% 347,715 8.2% 334,198 8.1%
Protiviti 141,632 13.1% 120,076 11.6% 528,340 12.4% 452,729 11.0%
------- ---- ------- ---- ------- ---- ------- ----
Total $1,083,864 100.0% $1,034,213 100.0% $4,245,895 100.0% $4,111,213 100.0%
========== ===== ========== ===== ========== ===== ========== =====
GROSS MARGIN:
Temporary and
consultant
staffing $312,465 36.5% $303,783 36.4% $1,220,749 36.2% $1,197,773 36.0%
Permanent
placement
staffing 85,743 100.0% 80,371 99.9% 347,579 100.0% 334,029 99.9%
Risk consulting
and internal
audit services 45,008 31.8% 32,271 26.9% 154,764 29.3% 117,258 25.9%
------ ---- ------ ---- ------- ---- ------- ----
Total $443,216 40.9% $416,425 40.3% $1,723,092 40.6% $1,649,060 40.1%
======== ==== ======== ==== ========== ==== ========== ====
OPERATING INCOME:
Temporary and
consultant
staffing $74,892 8.7% $80,172 9.6% $301,185 8.9% $276,826 8.3%
Permanent
placement
staffing 12,637 14.7% 11,583 14.4% 54,390 15.6% 55,745 16.7%
Risk consulting
and internal
audit services 16,536 11.7% 5,368 4.5% 42,702 8.1% 10,875 2.4%
------ ---- ----- --- ------ --- ------ ---
Total $104,065 9.6% $97,123 9.4% $398,277 9.4% $343,446 8.4%
======== === ======= === ======== === ======== ===
SELECTED CASH FLOW INFORMATION:
Amortization of
intangible
assets $400 $211 $1,700 $398
Depreciation
expense $12,077 $12,003 $47,072 $48,326
Capital
expenditures $21,033 $14,240 $53,150 $50,056
Open market
repurchases of
common stock
(shares) 526 1,187 3,305 4,689
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
December 31,
------------
2013 2012
---- ----
(Unaudited)
SELECTED BALANCE SHEET INFORMATION:
Cash and cash equivalents $275,764 $287,635
Accounts receivable, less
allowances $551,905 $512,852
Total assets $1,487,764 $1,381,271
Current liabilities $535,853 $501,637
Notes payable and other
indebtedness, $1,300 $1,428
less current portion
Total stockholders' equity $919,643 $842,011
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-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 staffing 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 five 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
STAFFING REVENUE GROWTH RATES (%) (UNAUDITED):
Year-Over-Year Non-GAAP Year-
Growth Rates Over-Year Growth
Rates
(As Reported) (Same Billing Days
and Constant
Currency)
2012 2013 2012 2013
---- ---- ---- ----
Global Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4
--- --- --- --- --- --- --- --- --- ---
Accountemps 4.2 -2.3 -0.7 -0.8 -0.4 2.8 0.2 -1.3 -2.0 -0.3
OfficeTeam 6.4 0.6 2.4 2.5 3.0 5.2 3.1 1.6 0.8 2.8
RH
Technology 6.4 4.6 10.2 11.8 14.1 4.6 7.4 9.5 10.8 14.9
RH
Management
Resources 8.0 -3.1 -1.2 -0.2 0.7 6.7 -0.3 -1.5 -0.9 1.1
--- ---- ---- ---- --- --- ---- ---- ---- ---
Temporary
and
consultant
staffing 5.6 -0.8 1.6 1.9 2.7 4.2 1.8 0.9 0.7 2.9
Permanent
placement
staffing 7.5 0.6 1.4 7.9 6.6 6.5 4.0 1.2 7.9 7.8
--- --- --- --- --- --- --- --- --- ---
Total 5.8 -0.6 1.6 2.5 3.1 4.4 2.0 1.0 1.3 3.3
United States
Temporary
and
consultant
staffing 9.1 2.9 4.0 4.5 5.0 7.4 5.5 3.3 3.3 5.2
Permanent
placement
staffing 16.9 14.9 10.3 13.8 11.0 15.0 17.8 9.6 12.5 11.3
---- ---- ---- ---- ---- ---- ---- --- ---- ----
Total 9.6 3.7 4.5 5.2 5.4 7.9 6.3 3.8 4.0 5.6
International
Temporary
and
consultant
staffing -3.8 -10.7 -5.8 -5.9 -4.2 -4.4 -8.2 -6.2 -7.2 -4.2
Permanent
placement
staffing -4.1 -16.6 -10.8 -0.8 0.0 -3.9 -12.7 -10.1 1.0 2.7
---- ----- ----- ---- --- ---- ----- ----- --- ---
Total -3.8 -11.6 -6.5 -5.2 -3.6 -4.4 -8.8 -6.8 -6.0 -3.3
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 Staffing 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 10-11.
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Staffing Revenue Growth - GLOBAL
-----------------------------------------------
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
------- ------- ------- ------- -------
Accountemps
As Reported 4.2 -2.3 -0.7 -0.8 -0.4
Billing Days
Impact -1.6 2.5 -0.6 -1.1 0.2
Currency
Impact 0.2 0.0 0.0 -0.1 -0.1
--- --- --- ---- ----
Same Billing
Days and
Constant
Currency 2.8 0.2 -1.3 -2.0 -0.3
--- --- ---- ---- ----
OfficeTeam
As Reported 6.4 0.6 2.4 2.5 3.0
Billing Days
Impact -1.7 2.5 -0.7 -1.2 0.2
Currency
Impact 0.5 0.0 -0.1 -0.5 -0.4
--- --- ---- ---- ----
Same Billing
Days and
Constant
Currency 5.2 3.1 1.6 0.8 2.8
--- --- --- --- ---
Robert Half Technology
As Reported 6.4 4.6 10.2 11.8 14.1
Billing Days
Impact -1.7 2.7 -0.8 -1.4 0.3
Currency
Impact -0.1 0.1 0.1 0.4 0.5
---- --- --- --- ---
Same Billing
Days and
Constant
Currency 4.6 7.4 9.5 10.8 14.9
--- --- --- ---- ----
Robert Half Management
Resources
As Reported 8.0 -3.1 -1.2 -0.2 0.7
Billing Days
Impact -1.7 2.4 -0.8 -1.1 0.2
Currency
Impact 0.4 0.4 0.5 0.4 0.2
--- --- --- --- ---
Same Billing
Days and
Constant
Currency 6.7 -0.3 -1.5 -0.9 1.1
--- ---- ---- ---- ---
Temporary and
consultant staffing
As Reported 5.6 -0.8 1.6 1.9 2.7
Billing Days
Impact -1.6 2.5 -0.8 -1.2 0.3
Currency
Impact 0.2 0.1 0.1 0.0 -0.1
--- --- --- --- ----
Same Billing
Days and
Constant
Currency 4.2 1.8 0.9 0.7 2.9
--- --- --- --- ---
Permanent placement
staffing
As Reported 7.5 0.6 1.4 7.9 6.6
Billing Days
Impact -1.7 2.6 -0.7 -1.2 0.2
Currency
Impact 0.7 0.8 0.5 1.2 1.0
--- --- --- --- ---
Same Billing
Days and
Constant
Currency 6.5 4.0 1.2 7.9 7.8
--- --- --- --- ---
Total
As Reported 5.8 -0.6 1.6 2.5 3.1
Billing Days
Impact -1.7 2.5 -0.7 -1.3 0.2
Currency
Impact 0.3 0.1 0.1 0.1 0.0
--- --- --- --- ---
Same Billing
Days and
Constant
Currency 4.4 2.0 1.0 1.3 3.3
--- --- --- --- ---
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES
STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Staffing Revenue Growth - UNITED STATES
------------------------------------------------------
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
------- ------- ------- ------- -------
Temporary and
consultant staffing
As Reported 9.1 2.9 4.0 4.5 5.0
Billing Days
Impact -1.7 2.6 -0.7 -1.2 0.2
Currency
Impact - ? ? ? ?
--- --- --- --- ---
Same Billing
Days and
Constant
Currency 7.4 5.5 3.3 3.3 5.2
--- --- --- --- ---
Permanent placement
staffing
As Reported 16.9 14.9 10.3 13.8 11.0
Billing Days
Impact -1.9 2.9 -0.7 -1.3 0.3
Currency
Impact - ? ? ? ?
--- --- --- --- ---
Same Billing
Days and
Constant
Currency 15.0 17.8 9.6 12.5 11.3
---- ---- --- ---- ----
Total
As Reported 9.6 3.7 4.5 5.2 5.4
Billing Days
Impact -1.7 2.6 -0.7 -1.2 0.2
Currency
Impact - ? ? ? ?
--- --- --- --- ---
Same Billing
Days and
Constant
Currency 7.9 6.3 3.8 4.0 5.6
--- --- --- --- ---
Year-Over-Year Staffing Revenue Growth - INTERNATIONAL
------------------------------------------------------
Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
------- ------- ------- ------- -------
Temporary and
consultant staffing
As Reported -3.8 -10.7 -5.8 -5.9 -4.2
Billing Days
Impact -1.5 2.2 -0.7 -1.2 0.2
Currency
Impact 0.9 0.3 0.3 -0.1 -0.2
--- --- --- ---- ----
Same Billing
Days and
Constant
Currency -4.4 -8.2 -6.2 -7.2 -4.2
---- ---- ---- ---- ----
Permanent placement
staffing
As Reported -4.1 -16.6 -10.8 -0.8 0.0
Billing Days
Impact -1.4 2.1 -0.6 -1.2 0.3
Currency
Impact 1.6 1.8 1.3 3.0 2.4
--- --- --- --- ---
Same Billing
Days and
Constant
Currency -3.9 -12.7 -10.1 1.0 2.7
---- ----- ----- --- ---
Total
As Reported -3.8 -11.6 -6.5 -5.2 -3.6
Billing Days
Impact -1.6 2.3 -0.7 -1.1 0.1
Currency
Impact 1.0 0.5 0.4 0.3 0.2
--- --- --- --- ---
Same Billing
Days and
Constant
Currency -4.4 -8.8 -6.8 -6.0 -3.3
---- ---- ---- ---- ----
SOURCE Robert Half
