MENLO PARK, Calif., Jan. 29 /PRNewswire-FirstCall/ -- Robert Half International Inc. (NYSE:RHI) today reported record revenues and earnings for the fourth quarter ended December 31, 2007.
For the quarter ended December 31, 2007, net income was $78.8 million or $.50 per share, on revenues of $1.22 billion. Net income for the prior year's fourth quarter was $75.4 million or $.45 per share, on revenues of $1.06 billion.
For the year ended December 31, 2007, net income was $296.2 million or $1.81 per share, on revenues of $4.65 billion. For the year ended December 31, 2006, net income was $283.2 million or $1.65 per share, on revenues of $4.01 billion.
Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said: "The fourth quarter of 2007 saw a continuation of the double-digit, year-over-year revenue growth we have seen for 16 consecutive quarters. International operations reported particularly strong fourth-quarter results."
Messmer continued, "2007 capped a very successful five-year period for RHI. Companywide revenues increased from $2 billion to $4.6 billion during this time frame, a compound annual growth rate of 20 percent, the vast majority of which was organic growth. Return on equity during this period averaged 22 percent per year, growing to 29 percent in 2007."
Robert Half International management will conduct a conference call today at 5 p.m. EST following the release. The dial-in number is 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. EST today and ending at 8 p.m. EST on February 5. The dial-in number for the replay is 800-283-4641 (+1-402-220-0851 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 Year Ended December 31, Ended December 31, 2007 2006 2007 2006 (Unaudited) (Unaudited) Net service revenues $1,220,068 $1,060,234 $4,645,666 $4,013,546 Direct costs of services 696,447 609,184 2,667,838 2,319,293 Gross margin 523,621 451,050 1,977,828 1,694,253 Selling, general and administrative expenses 393,911 331,565 1,497,957 1,243,952 Amortization of intangible assets 754 246 2,594 851 Interest income (2,912) (4,252) (13,127) (16,752) Income before income taxes 131,868 123,491 490,404 466,202 Provision for income taxes 53,052 48,118 194,192 183,024 Net income $78,816 $75,373 $296,212 $283,178 Diluted net income per share $.50 $.45 $ 1.81 $ 1.65 Shares: Basic 156,068 163,695 159,767 166,003 Diluted 158,459 168,846 163,479 171,712 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) Quarter Year Ended December 31, Ended December 31, 2007 2006 2007 2006 (Unaudited) (Unaudited) REVENUES: Accountemps $453,054 $389,265 $ 1,744,820 $1,485,105 OfficeTeam 222,212 201,410 860,744 776,425 Robert Half Technology 110,841 94,409 425,086 358,480 Robert Half Management Resources 165,276 136,294 618,624 513,876 Robert Half Finance & Accounting 117,590 86,751 444,090 336,250 Protiviti 151,095 152,105 552,302 543,410 Total $1,220,068 $1,060,234 $4,645,666 $4,013,546 GROSS MARGIN: Temporary and consultant staffing $357,423 $305,325 $1,359,075 $1,158,887 Permanent placement staffing 117,576 86,751 444,071 336,250 Risk consulting and internal audit services 48,622 58,974 174,682 199,116 Total $523,621 $451,050 $1,977,828 $1,694,253 OPERATING INCOME: Temporary and consultant staffing $98,925 $82,465 $372,892 $314,754 Permanent placement staffing 21,906 16,717 86,109 74,757 Risk consulting and internal audit services 8,879 20,303 20,870 60,790 Total $129,710 $119,485 $479,871 $450,301 SELECTED CASH FLOW INFORMATION: Amortization of intangible assets $754 $246 $2,594 $851 Depreciation expense $17,762 $15,264 $68,847 $60,234 Capital expenditures $20,185 $16,309 $83,777 $80,446 Open market repurchases of common stock (shares) 3,041 819 12,202 7,892 ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES SUPPLEMENTAL FINANCIAL INFORMATION (in thousands) December 31, 2007 2006 (Unaudited) SELECTED BALANCE SHEET INFORMATION: Cash and cash equivalents $310,000 $447,479 Accounts receivable, less allowances $593,169 $531,824 Total assets $1,450,298 $1,459,021 Current liabilities $447,952 $402,740 Notes payable and other indebtedness, less current portion $3,753 $3,831 Total stockholders' equity $984,049 $1,042,671
Source: Robert Half International Inc.