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Robert Half International Reports Fourth-Quarter Financial Results


Robert Half International Reports Fourth-Quarter Financial Results

Global Operating Income Up 35 Percent Year Over Year

MENLO PARK, Calif., Jan. 29, 2013 /CNW/ - Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2012.

For the quarter ended December 31, 2012, net income was $58.6 million, or $.42 per share, on revenues of $1.03 billion. Net income for the prior year's fourth quarter was $42.6 million, or $.30 per share, on revenues of $973.5 million.

For the year ended December 31, 2012, net income was $209.9 million, or $1.50 per share, on revenues of $4.11 billion. For the year ended December 31, 2011, net income was $149.9 million, or $1.04 per share, on revenues of $3.78 billion.

"We were pleased with the fourth-quarter financial results for the company," said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. "Global operating income was up 35 percent as a result of continued gross-margin expansion; lower selling, general and administrative expense ratios; and a solid fourth quarter for Protiviti. This is the 11th consecutive quarter in which net income and earnings per share have grown 20 percent or more on a year-over-year basis."

Messmer added, "Revenue growth in our staffing operations reflects ongoing demand for skilled talent on an interim and full-time basis, most notably in the United States."

Robert Half International management will conduct a conference call today at 5 p.m. EST. The dial-in number is 877-814-0475 (+1-706-643-9224 outside the United States). The password to access the call is "Robert Half." 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 28. 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# 84605710. The conference call also will be archived in audio format on the company's website at www.rhi.com.

Founded in 1948, Robert Half International, 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®, a global consulting and internal audit firm composed of experts in risk, advisory and transaction 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 temporary administrative support personnel; Robert Half® Technology, for information technology professionals; Robert Half® Legal, for legal personnel; and The Creative Group®, for interactive, design, marketing, advertising and public relations professionals.

Robert Half International 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: the global financial and economic situation; 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 health care 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.rhi.com.

____________________________________________ |ATTACHED:|Summary of Operations | |_________|__________________________________| | |Supplemental Financial Information| |_________|__________________________________| | |Non-GAAP Financial Measures | |_________|__________________________________|

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)


                           Quarter               Year
                           Ended December 31,    Ended December 31,
                           2012       2011       2012       2011

(Unaudited) (Unaudited) Net service revenues


                           $1,034,213 $ 973,473  $4,111,213 $3,776,976

Direct costs of services   617,788    586,151    2,462,153   2,287,374

Gross margin               416,425    387,322    1,649,060  1,489,602

Selling, general and
administrative             319,302    315,479    1,305,614  1,240,184

expenses

Amortization of intangible 211        35         398        153
assets

Interest income            (330)      (353)      (1,197)    (951)

Income before income taxes 97,242     72,161     344,245    250,216

Provision for income taxes 38,623     29,537     134,303    100,294

Net income                 $ 58,619   $ 42,624   $ 209,942  $ 149,922

Net income available to
common                     $ 58,322   $ 42,037   $ 208,867  $ 147,772

stockholders - diluted

Diluted net income per     $ .42      $ .30      $ 1.50     $ 1.04
share

Shares:

Basic                      136,929    138,581    138,201    140,479

Diluted                    138,439    140,059    139,409    141,790

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
              Quarter                          Year
              Ended December 31,               Ended December 31,
              2012             2011            2012             2011
              (Unaudited)                      (Unaudited)



REVENUES:

 Accountemps  $ 379,228 36.7%  $       37.4%   $         37.2%  $         37.2%
                               363,820         1,526,934        1,405,782

 OfficeTeam   208,385   20.1%  195,862 20.1%   814,858   19.8%  757,146   20.1%

 Robert Half  120,217   11.6%  112,981 11.6%   476,458   11.6%  428,482   11.3%
 Technology

 Robert Half
 Management   125,869   12.2%  116,563 12.0%   506,036   12.3%  459,589   12.2%
 Resources

 Robert Half
 Finance &    80,438    7.8%   74,824  7.7%    334,198   8.1%   302,155   8.0%
 Accounting

 Protiviti    120,076   11.6%  109,423 11.2%   452,729   11.0%  423,822   11.2%

 Total        $         100.0% $       100.0%  $         100.0% $         100.0%
              1,034,213        973,473         4,111,213        3,776,976



GROSS MARGIN:

 Temporary
 and          $ 303,783 36.4%  $       35.8%   $         36.0%  $         35.2%
 consultant                    282,412         1,197,773        1,074,006
 staffing

 Permanent
 placement    80,371    99.9%  74,756  99.9%   334,029   99.9%  301,945   99.9%
 staffing

 Risk
 consulting
 and internal 32,271    26.9%  30,154  27.6%   117,258   25.9%  113,651   26.8%
 audit
 services

 Total        $ 416,425 40.3%  $       39.8%   $         40.1%  $         39.4%
                               387,322         1,649,060        1,489,602



OPERATING
INCOME:

 Temporary
 and          $ 80,172  9.6%   $       8.1%    $ 276,826 8.3%   $ 209,101 6.9%
 consultant                    63,594
 staffing

 Permanent
 placement    11,583    14.4%  5,879   7.9%    55,745    16.7%  35,340    11.7%
 staffing

 Risk
 consulting
 and internal 5,368     4.5%   2,370   2.2%    10,875    2.4%   4,977     1.2%
 audit
 services

 Total        $ 97,123  9.4%   $       7.4%    $ 343,446 8.4%   $ 249,418 6.6%
                               71,843



SELECTED CASH
FLOW
INFORMATION:

 Amortization
 of           $ 211            $ 35            $ 398            $ 153
 intangible
 assets

 Depreciation $ 12,003         $               $ 48,326         $ 51,262
 expense                       12,753

 Capital      $ 14,240         $               $ 50,056         $ 56,535
 expenditures                  14,827

 Open market
 repurchases
 of common    1,187            286             4,689            5,308
 stock
 (shares)

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
                                      December 31,
                                      2012        2011
                                      (Unaudited)



SELECTED BALANCE SHEET INFORMATION:

Cash and cash equivalents             $ 287,635   $ 279,336

Accounts receivable, less allowances  $ 512,852   $ 493,327

Total assets                          $1,381,271  $1,311,836

Current liabilities                   $ 501,637   $ 473,001

Notes payable and other indebtedness,

$ 1,428 $ 1,545 less current portion

Total stockholders' equity $ 842,011 $ 800,505

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES 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 and billing days. The Company provides "same billing days and constant currency" revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company's staffing lines of business on both a reported basis and also on a same-day, constant-currency basis for global, U.S. and international operations. This information is presented for each of the five most recent quarters. The Company has provided this data because management believes it better reflects the Company's actual revenue growth rates 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 and constant currency exchange rates.

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. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

STAFFING REVENUE GROWTH RATES (%) (UNAUDITED):


                                           Non-GAAP Year-Over-Year
              Year-Over-Year Growth Rates  Growth Rates
              (As Reported)                (Same Billing Days and
                                           Constant Currency)
              2011 2012                    2011 2012



Global        Q4   Q1   Q2   Q3    Q4      Q4   Q1   Q2   Q3   Q4

Accountemps   14.0 16.7 10.3 4.1   4.2     15.4 16.3 12.8 7.1  2.8

OfficeTeam    12.3 13.7 7.5  3.6   6.4     13.8 13.6 10.3 7.3  5.2

RH Technology 22.7 19.8 13.8 6.3   6.4     24.1 18.8 14.8 8.0  4.6

RH Management 13.0 15.0 10.9 6.9   8.0     14.6 15.1 14.9 11.5 6.7
Resources

Temporary and
consultant    14.6 16.1 10.2 4.7   5.6     16.2 15.8 12.8 7.9  4.2
staffing

Permanent
placement     26.2 22.6 10.5 3.4   7.5     28.1 22.5 14.7 8.0  6.5
staffing

Total         15.5 16.6 10.2 4.6   5.8     17.1 16.3 13.0 7.9  4.4



United States

Temporary and
consultant    16.1 20.2 16.5 10.0  9.1     17.5 19.0 16.9 11.4 7.4
staffing

Permanent
placement     35.2 29.3 22.0 15.2  16.9    36.8 28.1 22.4 16.7 15.0
staffing

Total         17.2 20.8 16.9 10.4  9.6     18.6 19.6 17.3 11.8 7.9



International

Temporary and
consultant    10.7 6.2  -5.2 -8.7  -3.8    12.6 7.8  2.8  -0.8 -4.4
staffing

Permanent
placement     16.6 15.4 -1.9 -10.2 -4.1    18.9 16.5 6.5  -1.9 -3.9
staffing

Total         11.5 7.5  -4.7 -8.9  -3.8    13.5 9.0  3.3  -1.0 -4.4

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 input from all countries and all 
Staffing 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.

The term "same billing days and constant currency" means that the impact of 
different billing days has been removed from constant currency 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 
10-11.

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES



STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):



Year-Over-Year Staffing Revenue Growth – GLOBAL
                               Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012



Accountemps

As Reported                    14.0    16.7    10.3    4.1     4.2

Billing Days Impact            1.3     -1.1    0.4     1.3     -1.6

Currency Impact                0.1     0.7     2.1     1.7     0.2

Same Billing Days and Constant 15.4    16.3    12.8    7.1     2.8
Currency



OfficeTeam

As Reported                    12.3    13.7    7.5     3.6     6.4

Billing Days Impact            1.3     -1.1    0.3     1.3     -1.7

Currency Impact                0.2     1.0     2.5     2.4     0.5

Same Billing Days and Constant 13.8    13.6    10.3    7.3     5.2
Currency



Robert Half Technology

As Reported                    22.7    19.8    13.8    6.3     6.4

Billing Days Impact            1.4     -1.1    0.3     1.3     -1.7

Currency Impact                0.0     0.1     0.7     0.4     -0.1

Same Billing Days and Constant 24.1    18.8    14.8    8.0     4.6
Currency



Robert Half Management
Resources

As Reported                    13.0    15.0    10.9    6.9     8.0

Billing Days Impact            1.3     -1.1    0.3     1.4     -1.7

Currency Impact                0.3     1.2     3.7     3.2     0.4

Same Billing Days and Constant 14.6    15.1    14.9    11.5    6.7
Currency



Temporary and consultant
staffing

As Reported                    14.6    16.1    10.2    4.7     5.6

Billing Days Impact            1.4     -1.1    0.4     1.3     -1.6

Currency Impact                0.2     0.8     2.2     1.9     0.2

Same Billing Days and Constant 16.2    15.8    12.8    7.9     4.2
Currency



Permanent placement staffing

As Reported                    26.2    22.6    10.5    3.4     7.5

Billing Days Impact            1.5     -1.2    0.3     1.3     -1.7

Currency Impact                0.4     1.1     3.9     3.3     0.7

Same Billing Days and Constant 28.1    22.5    14.7    8.0     6.5
Currency



Total

As Reported                    15.5    16.6    10.2    4.6     5.8

Billing Days Impact            1.4     -1.1    0.4     1.3     -1.7

Currency Impact                0.2     0.8     2.4     2.0     0.3

Same Billing Days and Constant 17.1    16.3    13.0    7.9     4.4
Currency

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES



STAFFING REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):



Year-Over-Year Staffing Revenue Growth – UNITED STATES
                               Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012



Temporary and consultant
staffing

As Reported                    16.1    20.2    16.5    10.0    9.1

Billing Days Impact            1.4     -1.2    0.4     1.4     -1.7

Currency Impact                -       -       -       -       -

Same Billing Days and Constant 17.5    19.0    16.9    11.4    7.4
Currency



Permanent placement staffing

As Reported                    35.2    29.3    22.0    15.2    16.9

Billing Days Impact            1.6     -1.2    0.4     1.5     -1.9

Currency Impact                -       -       -       -       -

Same Billing Days and Constant 36.8    28.1    22.4    16.7    15.0
Currency



Total

As Reported                    17.2    20.8    16.9    10.4    9.6

Billing Days Impact            1.4     -1.2    0.4     1.4     -1.7

Currency Impact                -       -       -       -       -

Same Billing Days and Constant 18.6    19.6    17.3    11.8    7.9
Currency

Year-Over-Year Staffing Revenue Growth – INTERNATIONAL
                               Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012



Temporary and consultant
staffing

As Reported                    10.7    6.2     -5.2    -8.7    -3.8

Billing Days Impact            1.4     -1.0    0.3     1.2     -1.5

Currency Impact                0.5     2.6     7.7     6.7     0.9

Same Billing Days and Constant 12.6    7.8     2.8     -0.8    -4.4
Currency



Permanent placement staffing

As Reported                    16.6    15.4    -1.9    -10.2   -4.1

Billing Days Impact            1.4     -1.1    0.4     1.3     -1.4

Currency Impact                0.9     2.2     8.0     7.0     1.6

Same Billing Days and Constant 18.9    16.5    6.5     -1.9    -3.9
Currency



Total

As Reported                    11.5    7.5     -4.7    -8.9    -3.8

Billing Days Impact            1.4     -1.0    0.3     1.1     -1.6

Currency Impact                0.6     2.5     7.7     6.8     1.0

Same Billing Days and Constant 13.5    9.0     3.3     -1.0    -4.4
Currency

 

M. Keith Waddell, Vice Chairman, President and Chief Financial Officer,  
+1-650-234-6000

http://www.rhi.com

SOURCE: Robert Half International Inc.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/January2013/29/c9596.html

CO: Robert Half International Inc.
ST: California
NI: FIN ERN CONF 

-0- Jan/29/2013 21:30 GMT

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