Robert Half International Inc. Reports Revenues and Earnings for the Second Quarter of 2007

MENLO PARK, Calif., July 24 /PRNewswire-FirstCall/ -- Robert Half International Inc. (NYSE:RHI) today reported revenues and earnings for the second quarter ended June 30, 2007.

For the quarter ended June 30, 2007, net income was $72.7 million or $.44 per share, on revenues of $1.15 billion. Net income for the prior year's second quarter was $68.7 million or $.39 per share, on revenues of $981.8 million.

For the six months ended June 30, 2007, net income was $143.4 million or $.86 per share, on revenues of $2.25 billion. For the six months ended June 30, 2006, net income was $134.2 million or $.77 per share, on revenues of $1.93 billion.

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said: "Companywide revenues rose 17 percent from the second quarter of 2006, and income per share increased 12 percent during this same time period.

"Year-over-year and sequential revenue growth rates accelerated in each of our staffing divisions during the quarter, led by our international operations," Messmer added. "Our permanent placement business, Robert Half Finance & Accounting, continued to perform well, with worldwide revenues increasing 34 percent from the second quarter of 2006."

Commenting on the company's Protiviti subsidiary, Messmer said: "Protiviti's global suite of risk consulting services in areas such as IT applications controls, financial process effectiveness and private equity services, among others, continued to expand."

Robert Half International management will conduct a conference call today at 5 p.m. EDT following the release. The dial-in number is 1-800-862-9098 (+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 31. The dial-in number for the replay is 1-877-856-8966 (+1-402-220-1610 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(R) (www.protiviti.com), a leading independent internal audit and risk consulting firm. The company's specialized staffing divisions include Accountemps(R), Robert Half(R) Finance & Accounting and Robert Half(R) Management Resources, for temporary, full-time and project professionals, respectively, in the fields of accounting and finance; OfficeTeam(R), for highly skilled temporary administrative support personnel; Robert Half(R) Technology, for information technology professionals; Robert Half(R) Legal, for legal personnel; and The Creative Group(R), 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


               ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
                            SUMMARY OF OPERATIONS
                   (in thousands, except per share amounts)

                                 Quarter                   Six Months
                              Ended June 30,              Ended June 30,
                             2007        2006          2007           2006
                               (Unaudited)                 (Unaudited)

    Net service
     revenues            $1,149,128    $981,825     $2,246,553     $1,925,749

    Direct costs of
     services               656,443     563,823      1,293,139      1,114,543

    Gross margin            492,685     418,002        953,414        811,206

    Selling, general and
     administrative
     expenses               374,636     308,173        723,015        595,655
    Amortization of
     intangible assets          818         228          1,092            374
    Interest income          (3,073)     (4,129)        (7,090)        (7,626)
    Income before income
     taxes                  120,304     113,730        236,397        222,803
    Provision for income
     taxes                   47,578      45,075         92,964         88,645
    Net income              $72,726     $68,655       $143,433       $134,158
    Diluted net income
     per share                 $.44        $.39           $.86           $.77
    Shares:
         Basic              160,781     167,799        162,302        167,595
         Diluted            164,770     174,096        166,818        174,036


               ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
                      SUPPLEMENTAL FINANCIAL INFORMATION
                                (in thousands)

                                     Quarter                 Six Months
                                  Ended June 30,            Ended June 30,
                                2007        2006          2007        2006
                                  (Unaudited)               (Unaudited)
    REVENUES:
        Accountemps           $431,754    $362,641      $848,047    $718,218
        OfficeTeam             215,751     192,694       423,369     378,890
        Robert Half
         Technology            105,219      88,105       204,071     172,735
        Robert Half
         Management
         Resources             151,117     124,915       296,711     245,281
        Robert Half Finance
         & Accounting          115,023      85,552       213,709     161,036
        Protiviti              130,264     127,918       260,646     249,589
        Total               $1,149,128    $981,825    $2,246,553  $1,925,749
    GROSS MARGIN:
        Temporary and
         consultant
         staffing             $335,635    $285,878      $656,112    $560,452
        Permanent placement
         staffing              115,023      85,552       213,709     161,036
        Risk consulting and
         internal audit
         services               42,027      46,572        83,593      89,718
        Total                 $492,685    $418,002      $953,414    $811,206
    OPERATING INCOME:
        Temporary and
         consultant
         staffing              $90,659     $76,321      $178,456    $153,154
        Permanent placement
         staffing               23,829      20,556        43,941      37,456
        Risk consulting and
         internal audit
         services                3,561      12,952         8,002      24,941
        Total                 $118,049    $109,829      $230,399    $215,551
    SELECTED CASH FLOW
     INFORMATION:
        Amortization of
         intangible assets        $818        $228        $1,092        $374
        Depreciation expense   $17,331     $14,840       $33,250     $29,801
        Capital expenditures   $22,284     $19,202       $46,383     $43,514
        Open market
         repurchases of
         common stock
         (shares)                3,627       1,134         5,659       2,359


               ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
                      SUPPLEMENTAL FINANCIAL INFORMATION
                                (in thousands)

                                                            June 30,
                                                       2007           2006
                                                          (Unaudited)

    SELECTED BALANCE SHEET INFORMATION:
        Cash and cash equivalents                    $389,600       $528,457
        Accounts receivable, less allowances         $591,573       $509,509
        Total assets                               $1,497,900     $1,483,129
        Current liabilities                          $476,333       $407,335
        Notes payable and other indebtedness,
            less current portion                       $3,663         $4,206
        Total stockholders' equity                 $1,005,563     $1,062,643

Robert Half International Inc.

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