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

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.

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