MENLO PARK, Calif., Oct. 18 /PRNewswire-FirstCall/ -- Robert Half International Inc. (NYSE:RHI) today reported revenues and earnings for the third quarter ended September 30, 2007.
For the quarter ended September 30, 2007, net income was $74.0 million or $.46 per share, on revenues of $1.18 billion. Net income for the prior year's third quarter was $73.6 million or $.43 per share, on revenues of $1.03 billion.
For the nine months ended September 30, 2007, net income was $217.4 million or $1.32 per share, on revenues of $3.43 billion. For the nine months ended September 30, 2006, net income was $207.8 million or $1.20 per share, on revenues of $2.95 billion.
Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said: "Our staffing operations reported strong revenue growth compared to last year, led by our international operations. Our accounting and finance staffing divisions, including permanent placement, continued to perform well."
Commenting on the company's Protiviti subsidiary, Messmer said: "Protiviti posted solid sequential revenue gains and benefited from expanded consulting revenues in areas such as IT asset management, forensic investigations and new internal audit engagements."
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 October 25. The dial-in number for the replay is 1-800-753-9146 (+1-402-220-2705 outside the United States). The conference call also will be archived in audio format on the company's website at http://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) (http://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 http://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 Nine Months Ended September 30, Ended September 30, 2007 2006 2007 2006 (Unaudited) (Unaudited) Net service revenues $1,179,045 $1,027,563 $3,425,598 $2,953,312 Direct costs of services 678,252 595,566 1,971,391 1,710,109 Gross margin 500,793 431,997 1,454,207 1,243,203 Selling, general and administrative expenses 381,031 316,732 1,104,046 912,387 Amortization of intangible assets 748 231 1,840 605 Interest income (3,125) (4,874) (10,215) (12,500) Income before income taxes 122,139 119,908 358,536 342,711 Provision for income taxes 48,176 46,261 141,140 134,906 Net income $73,963 $73,647 $217,396 $207,805 Diluted net income per share $.46 $.43 $1.32 $ 1.20 Shares: Basic 158,480 165,177 161,014 166,781 Diluted 161,903 169,983 165,166 172,666 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) Quarter Nine Months Ended September 30, Ended September 30, 2007 2006 2007 2006 (Unaudited) (Unaudited) REVENUES: Accountemps $443,719 $377,622 $1,291,766 $1,095,840 OfficeTeam 215,163 196,125 638,532 575,015 Robert Half Technology 110,174 91,336 314,245 264,071 Robert Half Management Resources 156,637 132,301 453,348 377,582 Robert Half Finance & Accounting 112,791 88,463 326,500 249,499 Protiviti 140,561 141,716 401,207 391,305 Total $1,179,045 $1,027,563 $3,425,598 $2,953,312 GROSS MARGIN: Temporary and consultant staffing $345,540 $293,110 $1,001,652 $853,562 Permanent placement staffing 112,786 88,463 326,495 249,499 Risk consulting and internal audit services 42,467 50,424 126,060 140,142 Total $500,793 $431,997 $1,454,207 $1,243,203 OPERATING INCOME: Temporary and consultant staffing $95,511 $79,135 $273,968 $232,289 Permanent placement staffing 20,262 20,584 64,202 58,040 Risk consulting and internal audit services 3,989 15,546 11,991 40,487 Total $119,762 $115,265 $350,161 $330,816 SELECTED CASH FLOW INFORMATION: Amortization of intangible assets $748 $231 $1,840 $605 Depreciation expense $17,835 $15,169 $51,085 $44,970 Capital expenditures $17,209 $20,623 $63,592 $64,137 Open market repurchases of common stock (shares) 3,502 4,714 9,161 7,073 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) September 30, 2007 2006 (Unaudited) SELECTED BALANCE SHEET INFORMATION: Cash and cash equivalents $328,657 $431,657 Accounts receivable, less allowances $628,254 $536,629 Total assets $1,487,523 $1,432,243 Current liabilities $488,522 $432,652 Notes payable and other indebtedness, less current portion $3,748 $3,918 Total stockholders' equity $983,242 $986,703
Source: Robert Half International Inc.