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

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.

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