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Robert Half Reports First-Quarter Financial Results

 MENLO PARK, Calif., April 23, 2014 /CNW/ - Robert Half International Inc.  (NYSE symbol: RHI) today reported revenues and earnings for the first quarter  ended March 31, 2014.  For the quarter ended March 31, 2014, net income was $61.6 million, or $.45  per share, on revenues of $1.08 billion.  Net income for the prior year's  first quarter was $55.9 million, or $.40 per share, on revenues of $1.02  billion.  "We were pleased with the company's operating results for the first quarter,"  said Harold M. Messmer, Jr., chairman and CEO of Robert Half.  "We saw strong  demand in all areas of the business, especially in the latter part of the  quarter.  Growth was strongest in our Protiviti, technology staffing and  permanent placement divisions.  Non-U.S. operations also improved,  particularly permanent placement services, which reported solid sequential and  year-over-year revenue gains during the quarter."  Messmer added: "This was Robert Half's 16(th) consecutive quarter of  double-digit net income and earnings-per-share growth on a year-over-year  basis.  Unlevered return on equity was 27 percent for the quarter."  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 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# 13294726.  The conference call also will be  archived in audio format on the company's website at www.roberthalf.com.  Beginning this quarter, Robert Half is publishing its prepared remarks for the  quarterly earnings conference call at the same time the quarterly earnings  statement is released.  The prepared remarks are included in this press  release and also are available on the Robert Half website by using the  Quarterly Conference Calls link on the home page of the Investor Center  (www.roberthalf.com/investor-center).  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 and its attachments 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                            |     |_________|_______________________________________________________|     |         |Prepared Remarks for First-Quarter 2014 Conference Call|     |_________|_______________________________________________________|         ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES     SUMMARY OF OPERATIONS     (in thousands, except per share amounts)                                                  Quarter                                                  Ended March 31,                                                  2014       2013                                                  (Unaudited)     Net service revenues                                                  $1,084,342 $1,023,684     Direct costs of services                     645,847    613,394     Gross margin                                 438,495    410,290     Selling, general and administrative expenses 336,386    320,785     Amortization of intangible assets            333        433     Interest income                              (238)      (304)     Income before income taxes                   102,014    89,376     Provision for income taxes                   40,463     33,513     Net income                                   $ 61,551   $ 55,863     Net income available to common                                                  $ 61,551   $ 55,861     stockholders - diluted     Diluted net income per share                 $ .45      $ .40     Shares:     Basic                                        135,333    137,311     Diluted                                      136,161    138,394     ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES     SUPPLEMENTAL FINANCIAL INFORMATION     (in thousands)                                       Quarter                                       Ended March 31,                                       2014               2013                                       (Unaudited)     REVENUES:     Accountemps                       $ 383,024   35.3%  $ 376,614  36.8%     OfficeTeam                        211,060     19.5%  201,637    19.7%     Robert Half Technology            132,305     12.2%  121,001    11.8%     Robert Half Management Resources  131,181     12.1%  124,170    12.1%     Robert Half Finance & Accounting  92,625      8.5%   83,377     8.2%     Protiviti                         134,147     12.4%  116,885    11.4%     Total                             $ 1,084,342 100.0% $1,023,684 100.0%     GROSS MARGIN:     Temporary and consultant staffing $ 309,190   36.1%  $ 296,951  36.1%     Permanent placement staffing      92,602      100.0% 83,348     100.0%     Risk consulting and internal     audit                             36,703      27.4%  29,991     25.7%     services     Total                             $ 438,495   40.4%  $ 410,290  40.1%     OPERATING INCOME:     Temporary and consultant staffing $ 77,485    9.0%   $ 73,180   8.9%     Permanent placement staffing      17,275      18.7%  12,585     15.1%     Risk consulting and internal      7,349       5.5%   3,740      3.2%     audit services     Total                             $ 102,109   9.4%   $ 89,505   8.7%     SELECTED CASH FLOW INFORMATION:     Amortization of intangible assets $ 333              $ 433     Depreciation expense              $ 12,200           $ 11,747     Capital expenditures              $ 12,443           $ 8,082     Open market repurchases of                                       825                836     common stock (shares)     ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES     SUPPLEMENTAL FINANCIAL INFORMATION     (in thousands)                                           March 31,                                           2014       2013                                           (Unaudited)     SELECTED BALANCE SHEET INFORMATION:     Cash and cash equivalents             $ 267,737  $ 225,351     Accounts receivable, less allowances  $ 587,249  $ 547,500     Total assets                          $1,503,331 $1,387,745     Current liabilities                   $ 537,546  $ 499,081     Notes payable and other indebtedness,                                           $ 1,266    $ 1,397     less current portion     Total stockholders' equity            $ 932,146  $ 854,524  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)        |     |_____________|___________________________||__________________________|     |             |2013                 |2014 ||2013                 |2014|     |_____________|_____________________|_____||_____________________|____|     |Global       |Q1   |Q2   |Q3  |Q4  |Q1   ||Q1   |Q2   |Q3  |Q4  |Q1  |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Accountemps  |-2.3 |-0.7 |-0.8|-0.4|1.7  ||0.2  |-1.3 |-2.0|-0.3|1.4 |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |OfficeTeam   |0.6  |2.4  |2.5 |3.0 |4.7  ||3.1  |1.6  |0.8 |2.8 |4.0 |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |RH Technology|4.6  |10.2 |11.8|14.1|9.3  ||7.4  |9.5  |10.8|14.9|9.5 |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |RH Management|-3.1 |-1.2 |-0.2|0.7 |5.6  ||-0.3 |-1.5 |-0.9|1.1 |5.3 |     |Resources    |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Temporary and|     |     |    |    |     ||     |     |    |    |    |     |consultant   |-0.8 |1.6  |1.9 |2.7 |4.1  ||1.8  |0.9  |0.7 |2.9 |3.8 |     |staffing     |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Permanent    |     |     |    |    |     ||     |     |    |    |    |     |placement    |0.6  |1.4  |7.9 |6.6 |11.1 ||4.0  |1.2  |7.9 |7.8 |11.6|     |staffing     |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Total        |-0.6 |1.6  |2.5 |3.1 |4.8  ||2.0  |1.0  |1.3 |3.3 |4.5 |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |United States|     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Temporary and|     |     |    |    |     ||     |     |    |    |    |     |consultant   |2.9  |4.0  |4.5 |5.0 |5.9  ||5.5  |3.3  |3.3 |5.2 |5.4 |     |staffing     |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Permanent    |     |     |    |    |     ||     |     |    |    |    |     |placement    |14.9 |10.3 |13.8|11.0|12.6 ||17.8 |9.6  |12.5|11.3|12.1|     |staffing     |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Total        |3.7  |4.5  |5.2 |5.4 |6.4  ||6.3  |3.8  |4.0 |5.6 |5.9 |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |International|     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Temporary and|     |     |    |    |     ||     |     |    |    |    |     |consultant   |-10.7|-5.8 |-5.9|-4.2|-1.2 ||-8.2 |-6.2 |-7.2|-4.2|-1.0|     |staffing     |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Permanent    |     |     |    |    |     ||     |     |    |    |    |     |placement    |-16.6|-10.8|-0.8|0.0 |8.6  ||-12.7|-10.1|1.0 |2.7 |10.8|     |staffing     |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |Total        |-11.6|-6.5 |-5.2|-3.6|0.1  ||-8.8 |-6.8 |-6.0|-3.3|0.6 |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|     |             |     |     |    |    |     ||     |     |    |    |    |     |_____________|_____|_____|____|____|_____||_____|_____|____|____|____|  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 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014     Accountemps     As Reported                    -2.3    -0.7    -0.8    -0.4    1.7     Billing Days Impact            2.5     -0.6    -1.1    0.2     -0.5     Currency Impact                0.0     0.0     -0.1    -0.1    0.2     Same Billing Days and Constant 0.2     -1.3    -2.0    -0.3    1.4     Currency     OfficeTeam     As Reported                    0.6     2.4     2.5     3.0     4.7     Billing Days Impact            2.5     -0.7    -1.2    0.2     -0.5     Currency Impact                0.0     -0.1    -0.5    -0.4    -0.2     Same Billing Days and Constant 3.1     1.6     0.8     2.8     4.0     Currency     Robert Half Technology     As Reported                    4.6     10.2    11.8    14.1    9.3     Billing Days Impact            2.7     -0.8    -1.4    0.3     -0.5     Currency Impact                0.1     0.1     0.4     0.5     0.7     Same Billing Days and Constant 7.4     9.5     10.8    14.9    9.5     Currency     Robert Half Management     Resources     As Reported                    -3.1    -1.2    -0.2    0.7     5.6     Billing Days Impact            2.4     -0.8    -1.1    0.2     -0.4     Currency Impact                0.4     0.5     0.4     0.2     0.1     Same Billing Days and Constant -0.3    -1.5    -0.9    1.1     5.3     Currency     Temporary and consultant     staffing     As Reported                    -0.8    1.6     1.9     2.7     4.1     Billing Days Impact            2.5     -0.8    -1.2    0.3     -0.5     Currency Impact                0.1     0.1     0.0     -0.1    0.2     Same Billing Days and Constant 1.8     0.9     0.7     2.9     3.8     Currency     Permanent placement staffing     As Reported                    0.6     1.4     7.9     6.6     11.1     Billing Days Impact            2.6     -0.7    -1.2    0.2     -0.5     Currency Impact                0.8     0.5     1.2     1.0     1.0     Same Billing Days and Constant 4.0     1.2     7.9     7.8     11.6     Currency     Total     As Reported                    -0.6    1.6     2.5     3.1     4.8     Billing Days Impact            2.5     -0.7    -1.3    0.2     -0.5     Currency Impact                0.1     0.1     0.1     0.0     0.2     Same Billing Days and Constant 2.0     1.0     1.3     3.3     4.5     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 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014     Temporary and consultant     staffing     As Reported                    2.9     4.0     4.5     5.0     5.9     Billing Days Impact            2.6     -0.7    -1.2    0.2     -0.5     Currency Impact                ?       ?       ?       ?       ?     Same Billing Days and Constant 5.5     3.3     3.3     5.2     5.4     Currency     Permanent placement staffing     As Reported                    14.9    10.3    13.8    11.0    12.6     Billing Days Impact            2.9     -0.7    -1.3    0.3     -0.5     Currency Impact                ?       ?       ?       ?       ?     Same Billing Days and Constant 17.8    9.6     12.5    11.3    12.1     Currency     Total     As Reported                    3.7     4.5     5.2     5.4     6.4     Billing Days Impact            2.6     -0.7    -1.2    0.2     -0.5     Currency Impact                ?       ?       ?       ?       ?     Same Billing Days and Constant 6.3     3.8     4.0     5.6     5.9     Currency     Year-Over-Year Staffing Revenue Growth – INTERNATIONAL                                    Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014     Temporary and consultant     staffing     As Reported                    -10.7   -5.8    -5.9    -4.2    -1.2     Billing Days Impact            2.2     -0.7    -1.2    0.2     -0.4     Currency Impact                0.3     0.3     -0.1    -0.2    0.6     Same Billing Days and Constant -8.2    -6.2    -7.2    -4.2    -1.0     Currency     Permanent placement staffing     As Reported                    -16.6   -10.8   -0.8    0.0     8.6     Billing Days Impact            2.1     -0.6    -1.2    0.3     -0.5     Currency Impact                1.8     1.3     3.0     2.4     2.7     Same Billing Days and Constant -12.7   -10.1   1.0     2.7     10.8     Currency     Total     As Reported                    -11.6   -6.5    -5.2    -3.6    0.1     Billing Days Impact            2.3     -0.7    -1.1    0.1     -0.4     Currency Impact                0.5     0.4     0.3     0.2     0.9     Same Billing Days and Constant -8.8    -6.8    -6.0    -3.3    0.6     Currency  ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES PREPARED REMARKS FOR  FIRST-QUARTER 2014 CONFERENCE CALL  Dial-in number: 877-814-0475 (+1-706-643-9224 outside the United States)   Password:   "Robert Half"  OPERATOR:  Hello, and welcome to the Robert Half first-quarter 2014 conference call. Our  hosts for today's call are Mr. Max Messmer, chairman and CEO of Robert Half,  and Mr. Keith Waddell, vice chairman, president and chief financial officer.  Mr. Messmer, you may begin.  INTRODUCTION  HAROLD M. "MAX" MESSMER, JR., CHAIRMAN AND CEO, ROBERT HALF:  Hello, everyone. We appreciate your time today.  Before we begin, we would like to remind you that comments made on today's  call contain predictions, estimates and other forward-looking statements.  These statements represent our current judgment of what the future holds and  include words such as "forecast," "estimate," "project," "expect," "believe,"  "guidance" and similar expressions. We believe these remarks to be reasonable,  but they are subject to risks and uncertainties that could cause actual  results to differ materially from the forward-looking statements. Some of  these risks and uncertainties are described in today's press release and in  our SEC filings, including our 10-Ks, 10-Qs and today's 8-K. We assume no  obligation to update statements made on today's call.  Beginning this quarter, we are publishing our prepared remarks for this  conference call at the same time the quarterly earnings statement is released.  The prepared remarks were included with today's press release and also are  available on the Robert Half website by using the Quarterly Conference Calls  link on the home page of the Investor Center.  Now, let's discuss the first quarter.  First-quarter revenues were $1.08 billion, up 6 percent year over year. Income  per share was 45 cents, up 12 percent from one year ago.  Cash flow from  operations was $59 million during the first quarter. Capital expenditures were  $12 million.  Our board of directors increased the company's quarterly cash dividend by 2  cents per share during the quarter, to 18 cents. The dividend was paid to  shareholders on March 14, 2014, at a cost of $24 million. We started paying a  cash dividend 10 years ago and have increased it annually.  We repurchased 800,000 Robert Half shares during the first quarter, at a cost  of $33 million.  Approximately 7.3 million shares remain available for  repurchase under our board-approved stock repurchase plan.  We were pleased with the company's operating results for the first quarter. We  saw strong demand in all areas of the business, especially in the latter part  of the quarter. Growth was strongest in our Protiviti, technology staffing and  permanent placement divisions. Non-U.S. operations also improved, particularly  permanent placement services, which reported solid sequential and  year-over-year revenue gains during the quarter.  This was Robert Half's 16(th) consecutive quarter of double-digit net income  and earnings-per-share growth on a year-over-year basis. Unlevered return on  equity was 27 percent for the quarter.  Now, I'll turn the call over to Keith for a more detailed review of our  first-quarter financial results.  M. KEITH WADDELL, VICE CHAIRMAN, PRESIDENT AND CFO, ROBERT HALF:  REVENUES   Global revenues were $1.08 billion in the first quarter. This is up  6 percent from the first quarter one year ago on both a reported and same-day,  constant-currency basis.  Global staffing revenues were up 5 percent on a same-day, constant-currency  basis. U.S. staffing revenues were $720 million in the first quarter, up 6  percent on a same-day basis. International staffing revenues were $230 million  in the first quarter, up 1 percent on a same-day, constant-currency basis. We  have 342 staffing locations worldwide, including 99 locations in 18 countries  outside the United States.  We had 62.4 billing days in the first quarter, compared to 62.2 days in the  first quarter of 2013.  This had the effect of increasing reported  year-over-year staffing growth rates by 0.5 percent. The current quarter has  63.2 billing days, compared to 63.5 days in the year-ago quarter.  Currency exchange rates reduced first-quarter year-over-year staffing revenues  by $2 million. The strengthening of the euro and pound sterling were more than  offset by weaknesses in Canadian and Australian dollars. This reduced  year-over-year reported staffing growth rates by 0.2 percent in the first  quarter.  We provide a supplemental schedule with our earnings release that shows  year-over-year revenue growth rates for our various staffing lines of business  on a reported basis, as well as on a same-day, constant-currency basis. The  schedule further divides the data between U.S. and non-U.S. operations. You  can find the schedule in today's press release and in the Investor Center of  our website. This is a non-GAAP financial measure. We provide it to give you  information on certain revenue trends in our staffing operations.  Global revenues for Protiviti were $134 million in the first quarter, with  $108 million in revenues in the United States and $26 million in revenues  outside the U.S. Global revenues for Protiviti were up 15 percent year over  year, with U.S. revenues up 19 percent and non-U.S. revenues flat with the  prior year. Protiviti and its independently owned Member Firms serve clients  through a network of 75 locations in 25 countries.  GROSS MARGIN     Turning now to gross margin: In our temporary and consulting  staffing operations, gross margin was 36.1 percent of applicable revenues.  This is the same as the prior year's first quarter.  First-quarter revenues for our permanent placement operations were 9.7 percent  of overall staffing revenues, compared to 9.2 percent of staffing revenues in  the first quarter one year ago. Together with the temporary and consulting  gross margin previously discussed, overall staffing gross margin expanded by  40 basis points versus one year ago, to 42.3 percent.  First-quarter gross margin for Protiviti was $37 million, or 27.4 percent of  Protiviti revenues, compared to $30 million, or 25.7 percent of Protiviti  revenues, one year ago. The increase is due primarily to higher staff  utilization.  SELLING, GENERAL AND ADMINISTRATIVE COSTS Staffing SG&A costs were 32.3  percent of staffing revenues in the first quarter versus 32.5 percent in the  first quarter of 2013.  SG&A costs for Protiviti were 21.9 percent of  Protiviti revenues in the first quarter versus 22.5 percent of Protiviti  revenues reported this time last year.  OPERATING INCOME Operating income from our staffing divisions was $95 million  in the first quarter, or 10 percent of staffing revenues. The temporary and  consulting divisions reported $78 million in operating income, or 9 percent of  applicable revenues. Operating income for our permanent placement division was  $17 million in the first quarter, or 18.7 percent of applicable revenues.  First-quarter operating profit for Protiviti was $7 million, or 5.5 percent of  Protiviti revenues, compared to $4 million, or 3.2 percent of its revenues, in  the first quarter one year ago. Protiviti operating profit increased 96  percent over the prior year.  Our first-quarter 2014 income tax rate increased to 39.7 percent, up from 37.5  percent in the first quarter of 2013. This was primarily due to fewer  available unused foreign tax benefits. The higher tax rate lowered our  first-quarter results by approximately 2 cents per share.  ACCOUNTS RECEIVABLE At the end of the first quarter, accounts receivable were  $587 million. Implied days sales outstanding (DSO) was 49.3 days, compared to  48.7 days at the end of the first quarter of 2013.  GUIDANCE  And now for second-quarter guidance. We saw the following trends in  the first quarter and so far in April:         --  In the U.S., year-over-year growth rates for our temporary and             consulting divisions decelerated in January, accelerated in             February and accelerated at an even faster pace in March.         --  ­Also in the U.S., year-over-year growth rates for our             permanent placement division accelerated in January,             accelerated again in February and slowed slightly in March.         --  ­Outside the U.S., year-over-year temporary and consulting             staffing growth rates decelerated in January, accelerated in             February turning positive, and stayed positive in March.             Permanent placement growth rates outside the U.S. decelerated             in January, accelerated in February and remained at February             levels in March.         --  ­For the first two weeks of April, revenues for our temporary             and consulting operations were up 9 percent on a same-day,             constant-currency basis compared to the same period last year,             with U.S. temporary and consulting revenues up 10 percent and             non-U.S. temporary and consulting revenues up 5 percent.         --  ­For the first three weeks of April, permanent placement             revenues were up 14 percent on a same-day, constant-currency             basis compared to the same period last year, with U.S. perm             revenues up 24 percent and non-U.S. perm revenues down 4             percent.  We provide this information with the caveat that it is difficult to read a  great deal into these trends given the short time periods they represent.  We offer the following second-quarter guidance:         --  Revenues: $1.11 billion to $1.16 billion         --  Income per share: $0.48 to $0.53  We limit our guidance to one quarter. All estimates we provide on this call  are subject to the risks mentioned in today's press release and in our SEC  filings. Now, I'll turn the call back over to Max.  MAX MESSMER, CHAIRMAN AND CEO, ROBERT HALF:  Thank you, Keith. Demand for our professional staffing services and Protiviti  consulting solutions remained solid during the first quarter, with growth  rates accelerating in March and so far in April.  We were also pleased to see  higher staffing demand outside the United States, including Europe.  In the United States, the unemployment rate for college-educated workers 25  years of age and older, which we view as an indicator of professional-level  demand, is 3.4 percent. U.S. jobless claims have approached a seven-year low.  The first quarter saw the number of temporary workers as a percentage of total  U.S. employment exceed the all-time high established in 2000. More and more  businesses appreciate the value of interim staff to better manage variable  workloads and specialized project demands.  We work with companies of all sizes, but Robert Half is a particularly smart  staffing option for small and midsize businesses. The cost of a bad hiring  decision can affect these companies disproportionately compared to larger  firms that may have a deeper bench of workers from which to draw. Our clients  value our personal service approach, our expertise at assessing skills and our  deep talent networks.  Protiviti is serving an expanding client base. All of Protiviti's key services  grew nicely during the quarter, most notably IT consulting, risk and  compliance, and internal audit. Client demand was driven by improving market  conditions and a more stringent regulatory environment.  At this time, we will be happy to answer questions. We would request that you  please limit yourself to one question and a single follow-up, as needed. If  time permits, we will try to return to you later in the call if you have  additional questions.  (After the last question is answered the Operator will turn the call over to  Mr. Messmer.)  MAX MESSMER, CHAIRMAN AND CEO, ROBERT HALF:  That was our last question. We would like to thank everyone again for joining  us on today's call.  OPERATOR: This concludes today's teleconference. If you missed any part of the  call, it will be archived in audio format in the Investor Center of Robert  Half's website at www.roberthalf.com. You also can dial the conference call  replay. Dial-in details and the conference ID are contained in the company's  press release issued earlier today.    SOURCE  Robert Half  M. Keith Waddell, Vice Chairman, President and Chief Financial Officer, (650)  234-6000  http://www.roberthalf.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/April2014/23/c4861.html  CO: Robert Half ST: California NI: FIN CONF ERN EST ERN