Robert Half Reports First-Quarter Financial Results

MENLO PARK, Calif., April 23, 2020 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the first quarter ended March 31, 2020.

Robert Half (PRNewsfoto/Robert Half)

For the quarter ended March 31, 2020, net income was $90 million, or $.79 per share, on revenues of $1.507 billion. Net income for the prior year's first quarter was $110 million, or $.93 per share, on revenues of $1.469 billion.

M. Keith Waddell, president and CEO of Robert Half, said, "While our financial results through the first half of March were strong and above plan, the second half of March began to reflect the COVID-19 impact on our business, particularly our staffing operations. Our Robert Half Technology and Robert Half Management Resources divisions turned in solid results in the first quarter, notwithstanding this."

Commenting on the company's Protiviti subsidiary, Waddell said, "Protiviti had another very strong quarter, posting double-digit, year-on-year revenue gains for the eighth consecutive quarter. Protiviti saw broad strength across its diversified service offerings, including internal audit, technology consulting and regulatory compliance consulting, as well as services provided jointly with staffing.

"Return on invested capital for the company was 32 percent in the first quarter," Waddell said.

Robert Half management will conduct a conference call today at 5 p.m. EDT. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today's conference call is 877-814-0475 (+1-706-643-9224 outside the United States). The password is "Robert Half."

A taped recording of this call will be available for replay beginning at approximately 8 p.m. EDT today and ending at 11:59 p.m. EDT on June 2. 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# 9287368. The conference call also will be archived in audio format on the company's website at www.roberthalf.com/investor-center.

Founded in 1948, Robert Half is the world's first and largest specialized staffing firm and a recognized leader in professional consulting and staffing 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 administrative support professionals; Robert Half® Technology, for project and full-time technology professionals; Robert Half® Legal, for project and full-time staffing of lawyers, paralegals and legal support personnel; and The Creative Group®, for creative, digital, marketing, advertising and public relations professionals. Robert Half also is the parent company of Protiviti®, a global consulting firm that provides clients with consulting solutions in finance, technology, operations, data, analytics, governance, risk and internal audit.

Robert Half has staffing and consulting operations in more than 400 locations worldwide.

Certain information contained in this press release and its attachments 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 to or new interpretations of U.S. or international tax regulations; the global financial and economic situation; the duration and impact of the COVID-19 pandemic and efforts to mitigate its spread; 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.

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)



Quarter
Ended March 31,



2020


2019



(Unaudited)







Service revenues

$

1,506,691



$

1,468,530



Costs of services

895,974



860,942








Gross margin

610,717



607,588








Selling, general and administrative expenses

479,573



461,359



Amortization of intangible assets

338



342



Interest income, net

(957)



(1,496)








Income before income taxes

131,763



147,383



Provision for income taxes

41,848



37,585








Net income

$

89,915



$

109,798








Diluted net income per share

$

.79



$

.93








Shares:





Basic

113,187



117,068



Diluted

113,858



117,966



 


ROBERT HALF INTERNATIONAL INC.


SUPPLEMENTAL FINANCIAL INFORMATION


(in thousands)





Quarter Ended March 31,



2020


2019



(Unaudited)

SERVICE REVENUES:









Accountemps

$

480,441



31.9

%


$

483,473



32.9

%


OfficeTeam

239,036



15.9

%


252,035



17.2

%


Robert Half Technology

183,423



12.2

%


171,928



11.7

%


Robert Half Management Resources

189,220



12.5

%


177,191



12.1

%


Robert Half Finance & Accounting

120,489



8.0

%


131,562



8.9

%


Protiviti

294,082



19.5

%


252,341



17.2

%


Total

$

1,506,691



100.0

%


$

1,468,530



100.0

%










GROSS MARGIN:









Temporary and consultant staffing

$

412,996



37.8

%


$

412,465



38.0

%


Permanent placement staffing

120,280



99.8

%


131,308



99.8

%


Risk consulting and internal audit services

77,441



26.3

%


63,815



25.3

%


Total

$

610,717



40.5

%


$

607,588



41.4

%










OPERATING INCOME:









Temporary and consultant staffing

$

93,764



8.6

%


$

106,018



9.8

%


Permanent placement staffing

10,911



9.1

%


21,557



16.4

%


Risk consulting and internal audit services

26,469



9.0

%


18,654



7.4

%


Total

$

131,144



8.7

%


$

146,229



10.0

%










SELECTED CASH FLOW INFORMATION:









Depreciation

$

15,913





$

15,652





Capital expenditures

$

14,276





$

12,670





Open market repurchases of common stock (shares)

983





781




 

ROBERT HALF INTERNATIONAL INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




March 31,



2020


2019



(Unaudited)

SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$

249,914



$

269,645


Accounts receivable, less allowances


$

853,529



$

826,366


Total assets


$

2,274,852



$

2,204,607


Total current liabilities


$

913,354



$

900,730


Notes payable, less current portion


$

181



$

404


Total stockholders' equity


$

1,129,925



$

1,077,029


ROBERT HALF INTERNATIONAL INC.
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, billing days, and certain intercompany adjustments. The Company provides "as adjusted" revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company's lines of business on both a reported basis and also on an as-adjusted basis for global, U.S., and international operations. This information is presented for each of the six most recent quarters. The Company has provided this data because it focuses on the Company's revenue growth rates attributable to operating activities 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, constant currency exchange rates, and certain intercompany adjustments.

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.

NON-GAAP FINANCIAL MEASURES






REVENUE GROWTH RATES (%) (UNAUDITED):







Year-Over-Year Growth Rates
(As Reported)


Non-GAAP Year-Over-Year Growth Rates
(As Adjusted)


2018


2019


2020


2018


2019


2020


Q4


Q1


Q2


Q3


Q4


Q1


Q4


Q1


Q2


Q3


Q4


Q1

Global
























Accountemps

8.4


2.5


1.3


2.1


0.6


-0.6


8.7


5.6


2.8


1.6


1.1


-1.3

OfficeTeam

4.0


-3.5


-2.7


0.3


-3.8


-5.2


4.1


-0.4


-1.2


-0.1


-3.2


-5.9

RH Technology

11.4


7.4


4.6


4.9


6.4


6.7


11.4


10.7


6.4


4.8


7.2


5.7

RH Management Resources

4.1


2.1


4.6


9.2


6.1


6.8


9.1


14.3


12.0


12.9


9.4


6.3

Temporary and consultant staffing

7.1


1.7


1.4


3.2


1.3


0.7


8.0


6.2


3.7


3.4


2.2


0.0

Permanent placement staffing

12.8


8.4


4.3


3.8


0.4


-8.4


13.5


12.3


6.2


3.4


0.9


-9.0

Total staffing

7.6


2.4


1.7


3.3


1.2


-0.3


8.5


6.9


4.0


3.4


2.1


-1.0

Protiviti

22.8


21.5


16.6


18.3


15.7


16.5


19.2


17.3


13.8


14.6


14.1


15.5

Total

10.1


5.2


4.1


5.9


3.8


2.6


10.3


8.5


5.6


5.4


4.3


1.9

























United States
























Temporary and consultant staffing

7.4


3.4


3.5


5.7


3.0


2.0


6.3


5.1


3.8


4.5


3.2


0.5

Permanent placement staffing

16.4


10.0


6.6


6.5


3.0


-4.9


15.3


11.8


6.9


5.3


3.2


-6.3

Total staffing

8.1


4.0


3.8


5.8


3.0


1.3


7.1


5.7


4.1


4.5


3.2


-0.2

Protiviti

17.6


14.9


14.7


17.5


17.3


21.3


16.4


16.8


15.1


16.2


17.5


19.5

Total

9.7


5.7


5.6


7.9


5.6


4.7


8.7


7.4


6.0


6.6


5.7


3.2

























International
























Temporary and consultant staffing

6.1


-3.7


-5.9


-5.0


-4.8


-3.8


14.1


10.2


3.1


-0.2


-1.0


-1.9

Permanent placement staffing

5.6


4.9


-0.6


-2.1


-5.3


-15.9


10.4


12.8


4.4


-0.6


-4.1


-14.6

Total staffing

6.0


-2.5


-5.1


-4.6


-4.8


-5.6


13.6


10.5


3.3


-0.3


-1.5


-3.7

Protiviti

45.1


48.8


23.2


21.2


10.4


1.3


29.5


18.9


9.4


9.3


3.3


2.4

Total

11.2


3.7


-1.0


-0.7


-2.2


-4.4


16.0


11.9


4.4


1.4


-0.6


-2.7

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 inputs from all countries and all 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.

Intercompany Adjustments. The "As Reported" revenue growth rates are based upon reported revenues. In order to remove the fluctuations caused by the impact of certain intercompany adjustments, applicable comparative period revenues are reclassified to conform with the current period presentation.

The term "As Adjusted" means that the impact of different billing days, constant currency fluctuations, and certain intercompany adjustments are removed from the revenue growth rate 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 8-10.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES


REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – GLOBAL


Q4 2018


Q1 2019


Q2 2019


Q3 2019


Q4 2019


 Q1 2020

Accountemps








As Reported

8.4




2.5




1.3




2.1




0.6




-0.6


Billing Days Impact

-0.7




1.4




0.3




-1.3




0.0




-1.5


Currency Impact

1.0




1.7




1.2




0.8




0.5




0.8


As Adjusted

8.7




5.6




2.8




1.6




1.1




-1.3


OfficeTeam



















As Reported

4.0




-3.5




-2.7




0.3




-3.8




-5.2


Billing Days Impact

-0.7




1.3




0.2




-1.4




0.0




-1.3


Currency Impact

0.8




1.8




1.3




1.0




0.6




0.6


As Adjusted

4.1




-0.4




-1.2




-0.1




-3.2




-5.9


Robert Half Technology



















As Reported

11.4




7.4




4.6




4.9




6.4




6.7


Billing Days Impact

-0.9




1.4




0.3




-1.4




0.1




-1.5


Currency Impact

0.7




1.2




0.9




0.6




0.3




0.5


Intercompany Adjustments

0.2



0.7



0.6



0.7



0.4




As Adjusted

11.4




10.7




6.4




4.8




7.2




5.7


Robert Half Management Resources



















As Reported

4.1




2.1




4.6




9.2




6.1




6.8


Billing Days Impact

-0.8




1.5




0.2




-1.5




0.0




-1.5


Currency Impact

1.4




2.8




2.0




1.3




0.8




1.0


Intercompany Adjustments

4.4



7.9



5.2



3.9



2.5




As Adjusted

9.1




14.3




12.0




12.9




9.4




6.3


Temporary and consultant staffing



















As Reported

7.1




1.7




1.4




3.2




1.3




0.7


Billing Days Impact

-0.8




1.4




0.2




-1.3




0.0




-1.4


Currency Impact

1.0




1.8




1.3




0.9




0.5




0.7


Intercompany Adjustments

0.7



1.3



0.8



0.6



0.4




As Adjusted

8.0




6.2




3.7




3.4




2.2




0.0


Permanent placement staffing



















As Reported

12.8




8.4




4.3




3.8




0.4




-8.4


Billing Days Impact

-0.7




1.4




0.2




-1.4




0.0




-1.4


Currency Impact

1.4




2.5




1.7




1.0




0.5




0.8


As Adjusted

13.5




12.3




6.2




3.4




0.9




-9.0


Total staffing



















As Reported

7.6




2.4




1.7




3.3




1.2




-0.3


Billing Days Impact

-0.7




1.4




0.3




-1.4




0.0




-1.4


Currency Impact

1.0




1.9




1.3




0.9




0.5




0.7


Intercompany Adjustments

0.6



1.2



0.7



0.6



0.4




As Adjusted

8.5




6.9




4.0




3.4




2.1




-1.0


Protiviti



















As Reported

22.8




21.5




16.6




18.3




15.7




16.5


Billing Days Impact

-0.8




1.5




0.3




-1.4




0.1




-1.6


Currency Impact

0.9




1.7




1.2




0.8




0.3




0.6


Intercompany Adjustments

-3.7



-7.4



-4.3



-3.1



-2.0




As Adjusted

19.2




17.3




13.8




14.6




14.1




15.5


Total



















As Reported

10.1




5.2




4.1




5.9




3.8




2.6


Billing Days Impact

-0.8




1.4




0.2




-1.4




0.0




-1.4


Currency Impact

1.0




1.9




1.3




0.9




0.5




0.7


As Adjusted

10.3




8.5




5.6




5.4




4.3




1.9


 


ROBERT HALF INTERNATIONAL INC.


NON-GAAP FINANCIAL MEASURES




REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):




Year-Over-Year Revenue Growth – UNITED STATES



Q4 2018


Q1 2019


Q2 2019


Q3 2019


Q4 2019


 Q1 2020

Temporary and consultant staffing





As Reported

7.4




3.4




3.5




5.7




3.0




2.0



Billing Days Impact

-1.1




1.7




0.3




-1.2




0.2




-1.5



Currency Impact


















As Adjusted

6.3




5.1




3.8




4.5




3.2




0.5


























Permanent placement staffing
























As Reported

16.4




10.0




6.6




6.5




3.0




-4.9



Billing Days Impact

-1.1




1.8




0.3




-1.2




0.2




-1.4



Currency Impact


















As Adjusted

15.3




11.8




6.9




5.3




3.2




-6.3


























Total staffing
























As Reported

8.1




4.0




3.8




5.8




3.0




1.3



Billing Days Impact

-1.0




1.7




0.3




-1.3




0.2




-1.5



Currency Impact


















As Adjusted

7.1




5.7




4.1




4.5




3.2




-0.2


























Protiviti
























As Reported

17.6




14.9




14.7




17.5




17.3




21.3



Billing Days Impact

-1.2




1.9




0.4




-1.3




0.2




-1.8



Currency Impact


















As Adjusted

16.4




16.8




15.1




16.2




17.5




19.5


























Total
























As Reported

9.7




5.7




5.6




7.9




5.6




4.7



Billing Days Impact

-1.0




1.7




0.4




-1.3




0.1




-1.5



Currency Impact


















As Adjusted

8.7




7.4




6.0




6.6




5.7




3.2


 


ROBERT HALF INTERNATIONAL INC.


NON-GAAP FINANCIAL MEASURES




REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):




Year-Over-Year Revenue Growth – INTERNATIONAL



Q4 2018


Q1 2019


Q2 2019


Q3 2019


Q4 2019


 Q1 2020

Temporary and consultant staffing





As Reported

6.1




-3.7




-5.9




-5.0




-4.8




-3.8



Billing Days Impact

0.4




0.4




-0.2




-1.6




-0.4




-1.4



Currency Impact

4.4




8.1




5.7




3.8




2.4




3.3



Intercompany Adjustments

3.2



5.4



3.5



2.6



1.8





As Adjusted

14.1




10.2




3.1




-0.2




-1.0




-1.9


























Permanent placement staffing
























As Reported

5.6




4.9




-0.6




-2.1




-5.3




-15.9



Billing Days Impact

0.5




0.3




-0.2




-1.5




-0.4




-1.1



Currency Impact

4.3




7.6




5.2




3.0




1.6




2.4



As Adjusted

10.4




12.8




4.4




-0.6




-4.1




-14.6


























Total staffing
























As Reported

6.0




-2.5




-5.1




-4.6




-4.8




-5.6



Billing Days Impact

0.5




0.3




-0.2




-1.6




-0.6




-1.3



Currency Impact

4.4




8.0




5.6




3.7




2.3




3.2



Intercompany Adjustments

2.7



4.7



3.0



2.2



1.6





As Adjusted

13.6




10.5




3.3




-0.3




-1.5




-3.7


























Protiviti
























As Reported

45.1




48.8




23.2




21.2




10.4




1.3



Billing Days Impact

0.6




0.3




-0.1




-1.8




-0.6




-1.4



Currency Impact

4.2




7.1




5.0




3.5




1.4




2.5



Intercompany Adjustments

-20.4



-37.3



-18.7



-13.6



-7.9





As Adjusted

29.5




18.9




9.4




9.3




3.3




2.4


























Total
























As Reported

11.2




3.7




-1.0




-0.7




-2.2




-4.4



Billing Days Impact

0.4




0.4




-0.1




-1.6




-0.5




-1.3



Currency Impact

4.4




7.8




5.5




3.7




2.1




3.0



As Adjusted

16.0




11.9




4.4




1.4




-0.6




-2.7


 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/robert-half-reports-first-quarter-financial-results-301046479.html

SOURCE Robert Half

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.