Robert Half Reports First-Quarter Financial Results

             Robert Half Reports First-Quarter Financial Results

PR Newswire

MENLO PARK, Calif., April 23, 2014

MENLO PARK, Calif., April 23, 2014 /PRNewswire/ -- 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
Net service revenues                                  (Unaudited)
                                                     $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 Growth
                  Year-Over-Year Growth Rates  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 versus32.5 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:

  oIn 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.
  oAlso 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.
  oOutside 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.
  oFor 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.
  oFor 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:

  oRevenues: $1.11 billion to $1.16 billion
  oIncome 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

Website: http://www.roberthalf.com
Contact: M. Keith Waddell, Vice Chairman, President and Chief Financial
Officer, (650) 234-6000
 
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