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  
-0- Apr/23/2014 20:03 GMT
 
 
Press spacebar to pause and continue. Press esc to stop.