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.