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Robert Half International Reports First-Quarter Financial Results


Robert Half International Reports First-Quarter Financial Results

MENLO PARK, Calif., April 23, 2013 /CNW/ - Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the first quarter ended March 31, 2013.

For the quarter ended March 31, 2013, net income was $55.9 million, or $.40 per share, on revenues of $1.02 billion. Net income for the prior year's first quarter was $48.3 million, or $.34 per share, on revenues of $1.02 billion.

Harold M. Messmer, Jr., chairman and CEO of Robert Half International, said: "We were pleased with the company's overall performance in the first quarter. Demand for our professional services remained strongest in the United States, most notably in our permanent placement, information technology staffing and Protiviti operations. Despite softness in international markets, this is the 12(th) consecutive quarter in which both net income and earnings per share have grown 15 percent or more on a year-over-year basis."

Robert Half International management will conduct a conference call today at 5 p.m. EDT. 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. EDT today and ending at 8 p.m. EDT on May 23. 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# 26048091. 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 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.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
                                             Ended March 31,
                                             2013       2012
                                             (Unaudited)



Net service revenues                         $1,023,684 $1,015,444

Direct costs of services                     613,394    613,361

Gross margin                                 410,290    402,083

Selling, general and administrative expenses 320,785    322,018

Amortization of intangible assets            433        35

Interest income                              (304)      (234)

Income before income taxes                   89,376     80,264

Provision for income taxes                   33,513     31,930

Net income                                   $ 55,863   $ 48,334

Net income available to common

$ 55,861 $ 48,070 stockholders - diluted

Diluted net income per share $ .40 $ .34

Shares:

Basic 137,311 139,384

Diluted 138,394 140,443

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)


                                   Quarter
                                   Ended March 31,
                                   2013               2012
                                   (Unaudited)

REVENUES:

Accountemps                        $ 376,614   36.8%  $ 385,418  38.0%

OfficeTeam                         201,637     19.7%  200,465    19.7%

Robert Half Technology             121,001     11.8%  115,637    11.4%

Robert Half Management Resources   124,170     12.1%  128,137    12.6%

Robert Half Finance & Accounting   83,377      8.2%   82,862     8.2%

Protiviti                          116,885     11.4%  102,925    10.1%

Total                              $ 1,023,684 100.0% $1,015,444 100.0%

GROSS MARGIN:

Temporary and consultant staffing  $ 296,951   36.1%  $ 295,516  35.6%

Permanent placement staffing       83,348      100.0% 82,827     100.0%

Risk consulting and internal audit 29,991      25.7%  23,740     23.1%
services

Total                              $ 410,290   40.1%  $ 402,083  39.6%

OPERATING INCOME:

Temporary and consultant staffing  $ 73,180    8.9%   $ 69,154   8.3%

Permanent placement staffing       12,585      15.1%  13,266     16.0%

Risk consulting and internal audit 3,740       3.2%   (2,355)    -2.3%
services

Total                              $ 89,505    8.7%   $ 80,065   7.9%

SELECTED CASH FLOW INFORMATION:

Amortization of intangible assets  $ 433              $ 35

Depreciation expense               $ 11,747           $ 12,246

Capital expenditures               $ 8,082            $ 10,372

Open market repurchases of         836                1,017
common stock (shares)

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
                                      March 31,
                                      2013       2012
                                      (Unaudited)



SELECTED BALANCE SHEET INFORMATION:

Cash and cash equivalents             $ 225,351  $ 244,453

Accounts receivable, less allowances  $ 547,500  $ 523,453

Total assets                          $1,387,745 $1,308,637

Current liabilities                   $ 499,081  $ 454,911

Notes payable and other indebtedness,

$ 1,397 $ 1,516 less current portion

Total stockholders' equity $ 854,524 $ 815,680

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) | |_____________|___________________________||_________________________| | |2012 |2013 ||2012 |2013 | |_____________|____________________|______||___________________|_____| |Global |Q1 |Q2 |Q3 |Q4 |Q1 ||Q1 |Q2 |Q3 |Q4 |Q1 | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Accountemps |16.7|10.3|4.1 |4.2 |-2.3 ||16.3|12.8|7.1 |2.8 |0.2 | |_____________|____|____|_____|____|______||____|____|____|____|_____| |OfficeTeam |13.7|7.5 |3.6 |6.4 |0.6 ||13.6|10.3|7.3 |5.2 |3.1 | |_____________|____|____|_____|____|______||____|____|____|____|_____| |RH Technology|19.8|13.8|6.3 |6.4 |4.6 ||18.8|14.8|8.0 |4.6 |7.4 | |_____________|____|____|_____|____|______||____|____|____|____|_____| |RH Management|15.0|10.9|6.9 |8.0 |-3.1 ||15.1|14.9|11.5|6.7 |-0.3 | |Resources | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Temporary and| | | | | || | | | | | |consultant |16.1|10.2|4.7 |5.6 |-0.8 ||15.8|12.8|7.9 |4.2 |1.8 | |staffing | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Permanent | | | | | || | | | | | |placement |22.6|10.5|3.4 |7.5 |0.6 ||22.5|14.7|8.0 |6.5 |4.0 | |staffing | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Total |16.6|10.2|4.6 |5.8 |-0.6 ||16.3|13.0|7.9 |4.4 |2.0 | |_____________|____|____|_____|____|______||____|____|____|____|_____| |United States| | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Temporary and| | | | | || | | | | | |consultant |20.2|16.5|10.0 |9.1 |2.9 ||19.0|16.9|11.4|7.4 |5.5 | |staffing | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Permanent | | | | | || | | | | | |placement |29.3|22.0|15.2 |16.9|14.9 ||28.1|22.4|16.7|15.0|17.8 | |staffing | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Total |20.8|16.9|10.4 |9.6 |3.7 ||19.6|17.3|11.8|7.9 |6.3 | |_____________|____|____|_____|____|______||____|____|____|____|_____| |International| | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Temporary and| | | | | || | | | | | |consultant |6.2 |-5.2|-8.7 |-3.8|-10.7 ||7.8 |2.8 |-0.8|-4.4|-8.2 | |staffing | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Permanent | | | | | || | | | | | |placement |15.4|-1.9|-10.2|-4.1|-16.6 ||16.5|6.5 |-1.9|-3.9|-12.7| |staffing | | | | | || | | | | | |_____________|____|____|_____|____|______||____|____|____|____|_____| |Total |7.5 |-4.7|-8.9 |-3.8|-11.6 ||9.0 |3.3 |-1.0|-4.4|-8.8 | |_____________|____|____|_____|____|______||____|____|____|____|_____| | | | | | || || | | || | | |_____________|____|____|_____|____||_____||____|____|____||___|_____|

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


                               Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Accountemps

As Reported                    16.7    10.3    4.1     4.2     -2.3

Billing Days Impact            -1.1    0.4     1.3     -1.6    2.5

Currency Impact                0.7     2.1     1.7     0.2     0.0

Same Billing Days and Constant 16.3    12.8    7.1     2.8     0.2
Currency

OfficeTeam

As Reported                    13.7    7.5     3.6     6.4     0.6

Billing Days Impact            -1.1    0.3     1.3     -1.7    2.5

Currency Impact                1.0     2.5     2.4     0.5     0.0

Same Billing Days and Constant 13.6    10.3    7.3     5.2     3.1
Currency

Robert Half Technology

As Reported                    19.8    13.8    6.3     6.4     4.6

Billing Days Impact            -1.1    0.3     1.3     -1.7    2.7

Currency Impact                0.1     0.7     0.4     -0.1    0.1

Same Billing Days and Constant 18.8    14.8    8.0     4.6     7.4
Currency

Robert Half Management
Resources

As Reported                    15.0    10.9    6.9     8.0     -3.1

Billing Days Impact            -1.1    0.3     1.4     -1.7    2.4

Currency Impact                1.2     3.7     3.2     0.4     0.4

Same Billing Days and Constant 15.1    14.9    11.5    6.7     -0.3
Currency

Temporary and consultant
staffing

As Reported                    16.1    10.2    4.7     5.6     -0.8

Billing Days Impact            -1.1    0.4     1.3     -1.6    2.5

Currency Impact                0.8     2.2     1.9     0.2     0.1

Same Billing Days and Constant 15.8    12.8    7.9     4.2     1.8
Currency

Permanent placement staffing

As Reported                    22.6    10.5    3.4     7.5     0.6

Billing Days Impact            -1.2    0.3     1.3     -1.7    2.6

Currency Impact                1.1     3.9     3.3     0.7     0.8

Same Billing Days and Constant 22.5    14.7    8.0     6.5     4.0
Currency

Total

As Reported                    16.6    10.2    4.6     5.8     -0.6

Billing Days Impact            -1.1    0.4     1.3     -1.7    2.5

Currency Impact                0.8     2.4     2.0     0.3     0.1

Same Billing Days and Constant 16.3    13.0    7.9     4.4     2.0
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
                               Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Temporary and consultant
staffing

As Reported                    20.2    16.5    10.0    9.1     2.9

Billing Days Impact            -1.2    0.4     1.4     -1.7    2.6

Currency Impact                ?       ?       ?       ?       ?

Same Billing Days and Constant 19.0    16.9    11.4    7.4     5.5
Currency

Permanent placement staffing

As Reported                    29.3    22.0    15.2    16.9    14.9

Billing Days Impact            -1.2    0.4     1.5     -1.9    2.9

Currency Impact                ?       ?       ?       ?       ?

Same Billing Days and Constant 28.1    22.4    16.7    15.0    17.8
Currency

Total

As Reported                    20.8    16.9    10.4    9.6     3.7

Billing Days Impact            -1.2    0.4     1.4     -1.7    2.6

Currency Impact                ?       ?       ?       ?       ?

Same Billing Days and Constant 19.6    17.3    11.8    7.9     6.3
Currency
    Year-Over-Year Staffing Revenue Growth – INTERNATIONAL
                               Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013

Temporary and consultant
staffing

As Reported                    6.2     -5.2    -8.7    -3.8    -10.7

Billing Days Impact            -1.0    0.3     1.2     -1.5    2.2

Currency Impact                2.6     7.7     6.7     0.9     0.3

Same Billing Days and Constant 7.8     2.8     -0.8    -4.4    -8.2
Currency

Permanent placement staffing

As Reported                    15.4    -1.9    -10.2   -4.1    -16.6

Billing Days Impact            -1.1    0.4     1.3     -1.4    2.1

Currency Impact                2.2     8.0     7.0     1.6     1.8

Same Billing Days and Constant 16.5    6.5     -1.9    -3.9    -12.7
Currency

Total

As Reported                    7.5     -4.7    -8.9    -3.8    -11.6

Billing Days Impact            -1.0    0.3     1.1     -1.6    2.3

Currency Impact                2.5     7.7     6.8     1.0     0.5

Same Billing Days and Constant 9.0     3.3     -1.0    -4.4    -8.8
Currency

M. Keith Waddell, Vice Chairman, President and Chief Financial Officer, (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/April2013/23/c8026.html

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

-0- Apr/23/2013 20:08 GMT

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