Robert Half Reports Third-Quarter Financial Results

             Robert Half Reports Third-Quarter Financial Results

PR Newswire

MENLO PARK, Calif., Oct. 22, 2013

MENLO PARK, Calif., Oct. 22, 2013 /PRNewswire/ -- Robert Half International
Inc. (NYSE symbol: RHI) today reported revenues and earnings for the third
quarter ended September 30, 2013.

For the quarter ended September 30, 2013, net income was $66.4 million, or
$.48 per share, on revenues of $1.08 billion. Net income for the prior year's
third quarter was $57.7 million, or $.41 per share, on revenues of $1.03
billion.

For the nine months ended September 30, 2013, net income was $185.3 million,
or $1.35 per share, on revenues of $3.16 billion. For the nine months ended
September 30, 2012, net income was $151.3 million, or $1.08 per share, on
revenues of $3.08 billion.

"Demand for our professional staffing and consulting services remained strong
in the third quarter, led by Protiviti and our technology and permanent
placement staffing divisions, particularly in the United States," said Harold
M. Messmer, Jr., chairman and CEO of Robert Half. "For the 14^th consecutive
quarter, the company grew net income and earnings per share in excess of 15
percent on a year-over-year basis."

Messmer added, "We also were pleased with the company's return on equity of 30
percent for the quarter, which was accomplished with essentially no financial
leverage."

Robert Half 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 November 22. 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# 64065478. The conference call also will be
archived in audio format on the company's website at www.roberthalf.com.

Founded in 1948, Robert Half, 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 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.roberthalf.com/investor-center.

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                  Nine Months
                           Ended September 30,    Ended September 30,
                          2013         2012          2013         2012
Net service revenues       (Unaudited)             (Unaudited)
                          $1,075,119   $1,033,173    $3,162,031   $3,077,000
Direct costs of services  637,641      617,924       1,882,155    1,844,365
Gross margin              437,478      415,249       1,279,876    1,232,635
Selling, general and
administrative            333,565      321,030       985,664      986,312

 expenses
Amortization of           433          100           1,300        187
intangible assets
Interest income           (233)        (348)         (773)        (867)
Income before income      103,713      94,467        293,685      247,003
taxes
Provision for income      37,355       36,807        108,375      95,680
taxes
Net income                $   66,358 $   57,660  $  185,310 $  151,323
Net income available to
common
                          $   66,358 $   57,383  $  185,307 $  150,551
 stockholders -
diluted
Diluted net income per    $       $        $        $    
share                     .48          .41           1.35        1.08
Shares:
 Basic                135,727      137,918       136,469      138,627
 Diluted              137,241      139,141       137,759      139,735





ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
             Quarter                            Nine Months

             Ended September 30,                Ended September 30,
             2013             2012              2013              2012
             (Unaudited)                        (Unaudited)
REVENUES:
           $        35.2%  $        36.9%   $          35.8%  $         37.3%
Accountemps  378,117         381,288           1,133,246         1,147,706
           208,360   19.4%  203,244   19.7%   617,680    19.5%  606,473   19.7%
OfficeTeam
 Robert
Half         135,275   12.6%  121,028   11.7%   388,027    12.3%  356,241   11.6%
Technology
 Robert
Half         126,134   11.7%  126,362   12.2%   374,424    11.9%  380,167   12.4%
Management
Resources
 Robert
Half Finance 88,222    8.2%   81,757    7.9%    261,946    8.3%   253,760   8.2%
& Accounting
 Protiviti 139,011   12.9%  119,494   11.6%   386,708    12.2%  332,653   10.8%
 Total     $         100.0% $         100.0%  $3,162,031 100.0% $         100.0%
             1,075,119        1,033,173                           3,077,000
GROSS
MARGIN:
 Temporary
and          $        36.2%  $        36.2%   $         36.1%  $        35.9%
consultant   306,950         301,418           908,284          893,990
staffing
 Permanent
placement    88,178    100.0% 81,714    99.9%   261,836    100.0% 253,658   100.0%
staffing
 Risk
consulting
and internal 42,350    30.5%  32,117    26.9%   109,756    28.4%  84,987    25.5%
audit
services
 Total     $        40.7%  $        40.2%   $          40.5%  $         40.1%
             437,478         415,249           1,279,876         1,232,635
OPERATING
INCOME:
 Temporary
and          $       9.0%   $       9.1%    $         9.0%   $        7.9%
consultant   76,532          75,832            226,293          196,654
staffing
 Permanent
placement    13,691    15.5%  12,538    15.3%   41,753     15.9%  44,162    17.4%
staffing
 Risk
consulting
and internal 13,690    9.8%   5,849     4.9%    26,166     6.8%   5,507     1.7%
audit
services
 Total     $        9.7%   $       9.1%    $         9.3%   $        8.0%
             103,913         94,219            294,212          246,323
SELECTED
CASH FLOW
INFORMATION:

Amortization $            $             $              $    
of            433            100             1,300             187
intangible
assets
           $              $               $               $  
Depreciation 11,669          12,043            34,995           36,323
expense
 Capital   $              $               $               $  
expenditures 11,764          11,605            30,868           35,816
 Open
market
repurchases  753              999               2,779             3,502
of common
stock
(shares)



ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
                                             September 30,
                                             2013             2012
                                             (Unaudited)
SELECTED BALANCE SHEET INFORMATION:
 Cash and cash equivalents            $   279,747    $   289,428
 Accounts receivable, less allowances $   566,077    $   556,590
 Total assets                         $ 1,474,704     $ 1,406,707
 Current liabilities                  $   551,928    $   532,642
 Notes payable and other
indebtedness,                                $     1,333 $     1,458

 less current portion
 Total stockholders' equity           $   898,784    $   835,872



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 Growth
                  Year-Over-Year Growth Rates  Rates

                  (As Reported)                (Same Billing Days and Constant
                                               Currency)
                  2012       2013              2012        2013
Global            Q3    Q4   Q1    Q2    Q3    Q3    Q4    Q1     Q2     Q3
Accountemps       4.1   4.2  -2.3  -0.7  -0.8  7.1   2.8   0.2    -1.3   -2.0
OfficeTeam        3.6   6.4  0.6   2.4   2.5   7.3   5.2   3.1    1.6    0.8
RH Technology     6.3   6.4  4.6   10.2  11.8  8.0   4.6   7.4    9.5    10.8
RH Management     6.9   8.0  -3.1  -1.2  -0.2  11.5  6.7   -0.3   -1.5   -0.9
Resources
Temporary and
consultant        4.7   5.6  -0.8  1.6   1.9   7.9   4.2   1.8    0.9    0.7
staffing
Permanent
placement         3.4   7.5  0.6   1.4   7.9   8.0   6.5   4.0    1.2    7.9
staffing
Total             4.6   5.8  -0.6  1.6   2.5   7.9   4.4   2.0    1.0    1.3
United States
Temporary and
consultant        10.0  9.1  2.9   4.0   4.5   11.4  7.4   5.5    3.3    3.3
staffing
Permanent
placement         15.2  16.9 14.9  10.3  13.8  16.7  15.0  17.8   9.6    12.5
staffing
Total             10.4  9.6  3.7   4.5   5.2   11.8  7.9   6.3    3.8    4.0
International
Temporary and
consultant        -8.7  -3.8 -10.7 -5.8  -5.9  -0.8  -4.4  -8.2   -6.2   -7.2
staffing
Permanent
placement         -10.2 -4.1 -16.6 -10.8 -0.8  -1.9  -3.9  -12.7  -10.1  1.0
staffing
Total             -8.9  -3.8 -11.6 -6.5  -5.2  -1.0  -4.4  -8.8   -6.8   -6.0

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
                                       Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Accountemps
As Reported                            4.1     4.2     -2.3    -0.7    -0.8
Billing Days Impact                    1.3     -1.6    2.5     -0.6    -1.1
Currency Impact                        1.7     0.2     0.0     0.0     -0.1
Same Billing Days and Constant         7.1     2.8     0.2     -1.3    -2.0
Currency
OfficeTeam
As Reported                            3.6     6.4     0.6     2.4     2.5
Billing Days Impact                    1.3     -1.7    2.5     -0.7    -1.2
Currency Impact                        2.4     0.5     0.0     -0.1    -0.5
Same Billing Days and Constant         7.3     5.2     3.1     1.6     0.8
Currency
Robert Half Technology
As Reported                            6.3     6.4     4.6     10.2    11.8
Billing Days Impact                    1.3     -1.7    2.7     -0.8    -1.4
Currency Impact                        0.4     -0.1    0.1     0.1     0.4
Same Billing Days and Constant         8.0     4.6     7.4     9.5     10.8
Currency
Robert Half Management Resources
As Reported                            6.9     8.0     -3.1    -1.2    -0.2
Billing Days Impact                    1.4     -1.7    2.4     -0.8    -1.1
Currency Impact                        3.2     0.4     0.4     0.5     0.4
Same Billing Days and Constant         11.5    6.7     -0.3    -1.5    -0.9
Currency
Temporary and consultant staffing
As Reported                            4.7     5.6     -0.8    1.6     1.9
Billing Days Impact                    1.3     -1.6    2.5     -0.8    -1.2
Currency Impact                        1.9     0.2     0.1     0.1     0.0
Same Billing Days and Constant         7.9     4.2     1.8     0.9     0.7
Currency
Permanent placement staffing
As Reported                            3.4     7.5     0.6     1.4     7.9
Billing Days Impact                    1.3     -1.7    2.6     -0.7    -1.2
Currency Impact                        3.3     0.7     0.8     0.5     1.2
Same Billing Days and Constant         8.0     6.5     4.0     1.2     7.9
Currency
Total
As Reported                            4.6     5.8     -0.6    1.6     2.5
Billing Days Impact                    1.3     -1.7    2.5     -0.7    -1.3
Currency Impact                        2.0     0.3     0.1     0.1     0.1
Same Billing Days and Constant         7.9     4.4     2.0     1.0     1.3
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
                                       Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Temporary and consultant staffing
As Reported                            10.0    9.1     2.9     4.0     4.5
Billing Days Impact                    1.4     -1.7    2.6     -0.7    -1.2
Currency Impact                        −       −       ‒       ‒       ‒
Same Billing Days and Constant         11.4    7.4     5.5     3.3     3.3
Currency
Permanent placement staffing
As Reported                            15.2    16.9    14.9    10.3    13.8
Billing Days Impact                    1.5     -1.9    2.9     -0.7    -1.3
Currency Impact                        −       −       ‒       ‒       ‒
Same Billing Days and Constant         16.7    15.0    17.8    9.6     12.5
Currency
Total
As Reported                            10.4    9.6     3.7     4.5     5.2
Billing Days Impact                    1.4     -1.7    2.6     -0.7    -1.2
Currency Impact                        −       −       ‒       ‒       ‒
Same Billing Days and Constant         11.8    7.9     6.3     3.8     4.0
Currency
Year-Over-Year Staffing Revenue Growth – INTERNATIONAL
                                       Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013
Temporary and consultant staffing
As Reported                            -8.7    -3.8    -10.7   -5.8    -5.9
Billing Days Impact                    1.2     -1.5    2.2     -0.7    -1.2
Currency Impact                        6.7     0.9     0.3     0.3     -0.1
Same Billing Days and Constant         -0.8    -4.4    -8.2    -6.2    -7.2
Currency
Permanent placement staffing
As Reported                            -10.2   -4.1    -16.6   -10.8   -0.8
Billing Days Impact                    1.3     -1.4    2.1     -0.6    -1.2
Currency Impact                        7.0     1.6     1.8     1.3     3.0
Same Billing Days and Constant         -1.9    -3.9    -12.7   -10.1   1.0
Currency
Total
As Reported                            -8.9    -3.8    -11.6   -6.5    -5.2
Billing Days Impact                    1.1     -1.6    2.3     -0.7    -1.1
Currency Impact                        6.8     1.0     0.5     0.4     0.3
Same Billing Days and Constant         -1.0    -4.4    -8.8    -6.8    -6.0
Currency



SOURCE Robert Half

Website: http://www.roberthalf.com
Contact: M. Keith Waddell, Vice Chairman, President and Chief Financial
Officer, (650) 234-6000
 
Press spacebar to pause and continue. Press esc to stop.