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Robert Half International Reports Second-Quarter Financial Results


Robert Half International Reports Second-Quarter Financial Results

MENLO PARK, Calif., July 23, 2013 /CNW/ - Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second quarter ended June 30, 2013.

For the quarter ended June 30, 2013, net income was $63.1 million, or $.46 per share, on revenues of $1.06 billion. Net income for the prior year's second quarter was $45.3 million, or $.32 per share, on revenues of $1.03 billion. Net income and income per share for the prior year's second quarter were reduced by $8.1 million, or $.06 per share, related to a nonrecurring litigation settlement and the resolution of certain tax matters disclosed in the company's July 5, 2012, Form 8-K filing.

For the six months ended June 30, 2013, net income was $119.0 million, or $.86 per share, on revenues of $2.09 billion. For the six months ended June 30, 2012, net income was $93.7 million, or $.67 per share, on revenues of $2.04 billion.

Harold M. Messmer, Jr., chairman and CEO of Robert Half International, said: "Robert Half saw continued demand for our professional services during the quarter, and we were pleased with the company's overall performance. Revenue growth was concentrated in the United States, which has been the case for the past several quarters. Within our staffing lines of business, our Robert Half Technology division reported the most sizable revenue gains. Protiviti also had another excellent quarter, with revenues reaching their highest level since the fourth quarter of 2007."

Messmer added, "Despite ongoing softness in international markets, this is the 13(th) consecutive quarter in which 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 August 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# 95343322. 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/InvestorCenter.

____________________________________________ |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                Six Months
                           Ended June 30,         Ended June 30,
                           2013       2012        2013       2012
                           (Unaudited)            (Unaudited)

Net service revenues
                           $1,063,228 $1,028,383  $2,086,912 $2,043,827

Direct costs of services   631,120    613,080     1,244,514  1,226,441

Gross margin               432,108    415,303     842,398    817,386

Selling, general and       331,314    343,264     652,099    665,282
administrative expenses

Amortization of intangible 434        52          867        87
assets

Interest income            (236)      (285)       (540)      (519)

Income before income taxes 100,596    72,272      189,972    152,536

Provision for income taxes 37,507     26,943      71,020     58,873

Net income                 $ 63,089   $ 45,329    $ 118,952  $ 93,663

Net income available to
common                     $ 63,088   $ 45,101    $ 118,948  $ 93,171

stockholders - diluted

Diluted net income per     $ .46      $ .32       $ .86      $ .67
share



Shares:

Basic                      136,385    138,588     136,845    138,986

Diluted                    137,659    139,739     138,024    140,036

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
             Quarter                            Six Months
             Ended June 30,                     Ended June 30,
             2013             2012              2013              2012
             (Unaudited)                        (Unaudited)

REVENUES:

Accountemps  $ 378,515 35.6%  $ 381,000 37.1%   $ 755,129  36.2%  $ 766,418 37.5%

OfficeTeam   207,683   19.5%  202,764   19.7%   409,320    19.6%  403,229   19.7%

Robert Half  131,751   12.4%  119,576   11.6%   252,752    12.1%  235,213   11.5%
Technology

Robert Half
Management   124,120   11.7%  125,668   12.2%   248,290    11.9%  253,805   12.4%
Resources

Robert Half
Finance &    90,347    8.5%   89,141    8.7%    173,724    8.3%   172,003   8.4%
Accounting

Protiviti    130,812   12.3%  110,234   10.7%   247,697    11.9%  213,159   10.5%

Total        $         100.0% $         100.0%  $2,086,912 100.0% $         100.0%
             1,063,228        1,028,383                           2,043,827

GROSS
MARGIN:

Temporary
and          $ 304,383 36.1%  $ 297,056 35.8%   $ 601,334  36.1%  $ 592,572 35.7%
consultant
staffing

Permanent
placement    90,310    100.0% 89,117    100.0%  173,658    100.0% 171,944   100.0%
staffing

Risk
consulting
and internal 37,415    28.6%  29,130    26.4%   67,406     27.2%  52,870    24.8%
audit
services

Total        $ 432,108 40.6%  $ 415,303 40.4%   $ 842,398  40.4%  $ 817,386 40.0%

OPERATING
INCOME:

Temporary
and          $ 76,581  9.1%   $ 51,668  6.2%    $ 149,761  9.0%   $ 120,822 7.3%
consultant
staffing

Permanent
placement    15,477    17.1%  18,358    20.6%   28,062     16.2%  31,624    18.4%
staffing

Risk
consulting
and internal 8,736     6.7%   2,013     1.8%    12,476     5.0%   (342)     -0.2%
audit
services

Total        $ 100,794 9.5%   $ 72,039  7.0%    $ 190,299  9.1%   $ 152,104 7.4%

SELECTED
CASH FLOW
INFORMATION:

Amortization
of           $ 434            $ 52              $ 867             $ 87
intangible
assets

Depreciation $ 11,579         $ 12,034          $ 23,326          $ 24,280
expense

Capital      $ 11,022         $ 13,839          $ 19,104          $ 24,211
expenditures

Open market
repurchases
of           1,190            1,486             2,026             2,503

common stock
(shares)

ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
                                      June 30,
                                      2013        2012
                                      (Unaudited)



SELECTED BALANCE SHEET INFORMATION:

Cash and cash equivalents             $ 246,971   $ 258,578

Accounts receivable, less allowances  $ 557,311   $ 531,848

Total assets                          $ 1,428,324 $ 1,344,399

Current liabilities                   $ 534,895   $ 496,317

Notes payable and other indebtedness,

$ 1,365 $ 1,487 less current portion

Total stockholders' equity $ 861,751 $ 809,360

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 |Q2 |Q3 |Q4 |Q1 |Q2 ||Q2 |Q3 |Q4 |Q1 |Q2 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Accountemps |10.3|4.1 |4.2 |-2.3 |-0.7 ||12.8|7.1 |2.8 |0.2 |-1.3 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |OfficeTeam |7.5 |3.6 |6.4 |0.6 |2.4 ||10.3|7.3 |5.2 |3.1 |1.6 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |RH Technology|13.8|6.3 |6.4 |4.6 |10.2 ||14.8|8.0 |4.6 |7.4 |9.5 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |RH Management|10.9|6.9 |8.0 |-3.1 |-1.2 ||14.9|11.5|6.7 |-0.3 |-1.5 | |Resources | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Temporary and| | | | | || | | | | | |consultant |10.2|4.7 |5.6 |-0.8 |1.6 ||12.8|7.9 |4.2 |1.8 |0.9 | |staffing | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Permanent | | | | | || | | | | | |placement |10.5|3.4 |7.5 |0.6 |1.4 ||14.7|8.0 |6.5 |4.0 |1.2 | |staffing | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Total |10.2|4.6 |5.8 |-0.6 |1.6 ||13.0|7.9 |4.4 |2.0 |1.0 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |United States| | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Temporary and| | | | | || | | | | | |consultant |16.5|10.0 |9.1 |2.9 |4.0 ||16.9|11.4|7.4 |5.5 |3.3 | |staffing | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Permanent | | | | | || | | | | | |placement |22.0|15.2 |16.9|14.9 |10.3 ||22.4|16.7|15.0|17.8 |9.6 | |staffing | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Total |16.9|10.4 |9.6 |3.7 |4.5 ||17.3|11.8|7.9 |6.3 |3.8 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |International| | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Temporary and| | | | | || | | | | | |consultant |-5.2|-8.7 |-3.8|-10.7|-5.8 ||2.8 |-0.8|-4.4|-8.2 |-6.2 | |staffing | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Permanent | | | | | || | | | | | |placement |-1.9|-10.2|-4.1|-16.6|-10.8||6.5 |-1.9|-3.9|-12.7|-10.1| |staffing | | | | | || | | | | | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| |Total |-4.7|-8.9 |-3.8|-11.6|-6.5 ||3.3 |-1.0|-4.4|-8.8 |-6.8 | |_____________|____|_____|____|_____|_____||____|____|____|_____|_____| | | | | | | || | || | | | |_____________|____|_____|____|_____|_____||____|____||___|_____|_____|

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

Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Accountemps

As Reported 10.3 4.1 4.2 -2.3 -0.7

Billing Days Impact 0.4 1.3 -1.6 2.5 -0.6

Currency Impact 2.1 1.7 0.2 0.0 0.0

Same Billing Days and Constant 12.8 7.1 2.8 0.2 -1.3 Currency

OfficeTeam

As Reported 7.5 3.6 6.4 0.6 2.4

Billing Days Impact 0.3 1.3 -1.7 2.5 -0.7

Currency Impact 2.5 2.4 0.5 0.0 -0.1

Same Billing Days and Constant 10.3 7.3 5.2 3.1 1.6 Currency

Robert Half Technology

As Reported 13.8 6.3 6.4 4.6 10.2

Billing Days Impact 0.3 1.3 -1.7 2.7 -0.8

Currency Impact 0.7 0.4 -0.1 0.1 0.1

Same Billing Days and Constant 14.8 8.0 4.6 7.4 9.5 Currency

Robert Half Management Resources

As Reported 10.9 6.9 8.0 -3.1 -1.2

Billing Days Impact 0.3 1.4 -1.7 2.4 -0.8

Currency Impact 3.7 3.2 0.4 0.4 0.5

Same Billing Days and Constant 14.9 11.5 6.7 -0.3 -1.5 Currency

Temporary and consultant staffing

As Reported 10.2 4.7 5.6 -0.8 1.6

Billing Days Impact 0.4 1.3 -1.6 2.5 -0.8

Currency Impact 2.2 1.9 0.2 0.1 0.1

Same Billing Days and Constant 12.8 7.9 4.2 1.8 0.9 Currency

Permanent placement staffing

As Reported 10.5 3.4 7.5 0.6 1.4

Billing Days Impact 0.3 1.3 -1.7 2.6 -0.7

Currency Impact 3.9 3.3 0.7 0.8 0.5

Same Billing Days and Constant 14.7 8.0 6.5 4.0 1.2 Currency

Total

As Reported 10.2 4.6 5.8 -0.6 1.6

Billing Days Impact 0.4 1.3 -1.7 2.5 -0.7

Currency Impact 2.4 2.0 0.3 0.1 0.1

Same Billing Days and Constant 13.0 7.9 4.4 2.0 1.0 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


                               Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Temporary and consultant
staffing

As Reported                    16.5    10.0    9.1     2.9     4.0

Billing Days Impact            0.4     1.4     -1.7    2.6     -0.7

Currency Impact                − − − ?       ?

Same Billing Days and Constant 16.9    11.4    7.4     5.5     3.3
Currency

Permanent placement staffing

As Reported                    22.0    15.2    16.9    14.9    10.3

Billing Days Impact            0.4     1.5     -1.9    2.9     -0.7

Currency Impact                − − − ?       ?

Same Billing Days and Constant 22.4    16.7    15.0    17.8    9.6
Currency

Total

As Reported                    16.9    10.4    9.6     3.7     4.5

Billing Days Impact            0.4     1.4     -1.7    2.6     -0.7

Currency Impact                − − − ?       ?

Same Billing Days and Constant 17.3    11.8    7.9     6.3     3.8
Currency
    Year-Over-Year Staffing Revenue Growth – INTERNATIONAL
                               Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013

Temporary and consultant
staffing

As Reported                    -5.2    -8.7    -3.8    -10.7   -5.8

Billing Days Impact            0.3     1.2     -1.5    2.2     -0.7

Currency Impact                7.7     6.7     0.9     0.3     0.3

Same Billing Days and Constant 2.8     -0.8    -4.4    -8.2    -6.2
Currency

Permanent placement staffing

As Reported                    -1.9    -10.2   -4.1    -16.6   -10.8

Billing Days Impact            0.4     1.3     -1.4    2.1     -0.6

Currency Impact                8.0     7.0     1.6     1.8     1.3

Same Billing Days and Constant 6.5     -1.9    -3.9    -12.7   -10.1
Currency

Total

As Reported                    -4.7    -8.9    -3.8    -11.6   -6.5

Billing Days Impact            0.3     1.1     -1.6    2.3     -0.7

Currency Impact                7.7     6.8     1.0     0.5     0.4

Same Billing Days and Constant 3.3     -1.0    -4.4    -8.8    -6.8
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/July2013/23/c9276.html

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

-0- Jul/23/2013 20:03 GMT

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