Robert Half Reports Second-Quarter Financial Results

             Robert Half Reports Second-Quarter Financial Results

PR Newswire

MENLO PARK, Calif., July 22, 2014

MENLO PARK, Calif., July 22, 2014 /PRNewswire/ -- Robert Half International
Inc. (NYSE symbol: RHI) today reported revenues and earnings for the second
quarter ended June 30, 2014.

For the quarter ended June 30, 2014, net income was $75.1 million, or $.55 per
share, on revenues of $1.16 billion. Net income for the prior year's second
quarter was $63.1 million, or $.46 per share, on revenues of $1.06 billion.

For the six months ended June 30, 2014, net income was $136.7 million, or
$1.01 per share, on revenues of $2.25 billion. For the six months ended June
30, 2013, net income was $119.0 million, or $.86 per share, on revenues of
$2.09 billion.

"Robert Half's growth in the second quarter was broad-based and reflective of
improving labor markets and higher global demand for our professional staffing
services," said Harold M. Messmer, Jr., chairman and CEO of Robert Half.
"Year-over-year revenue growth rates accelerated nicely during the quarter,
both in the United States and in our international operations. The company's
Protiviti subsidiary also continued to post very strong operating results."

Messmer added, "The highest sequential and year-over-year revenue growth rates
were reported by our permanent placement operations and Protiviti. This was
Robert Half's 17th consecutive quarter of double-digit net income and
earnings-per-share growth on a year-over-year basis. Return on equity, on an
unlevered basis, was 31 percent for the quarter."

Robert Half management will conduct a conference call today at 5 p.m. EDT.
The prepared remarks for this call are available now in the Investor Center of
the Robert Half website (www.roberthalf.com/investor-center). Simply click on
the Quarterly Conference Calls link. The dial-in number to listen to today's
conference call is 877-814-0475 (+1-706-643-9224 outside the United States).
The password is "Robert Half." 

A taped recording of this call will be available for replay beginning at
approximately 8 p.m. EDT today and ending at 8 p.m. EDT on August 22. The
dial-in number for the replay is 855-859-2056 (+1-404-537-3406 outside the
United States). To access the replay, enter conference ID# 61813931. The
conference call also will be archived in audio format on the company's website
at www.roberthalf.com.

Founded in 1948, Robert Half, the world's first and largest specialized
staffing firm, is a recognized leader in professional consulting and staffing
services, and is the parent company of Protiviti^®, a global consulting firm
that helps companies solve problems in finance, technology, operations,
governance, risk and internal audit. 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



ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)
                              Quarter                  Six Months
                              Ended June 30,           Ended June 30,
                              2014        2013         2014        2013
Net service revenues          (Unaudited)              (Unaudited)
                              $ 1,164,914 $ 1,063,228  $ 2,249,256 $ 2,086,912
Direct costs of services      686,470     631,120      1,332,317   1,244,514
Gross margin                  478,444     432,108      916,939     842,398
Selling, general and          354,791     331,314      691,177     652,099
administrative expenses
Amortization of intangible    224         434          557         867
assets
Interest income               (224)       (236)        (462)       (540)
Income before income taxes    123,653     100,596      225,667     189,972
Provision for income taxes    48,513      37,507       88,976      71,020
Net income                    $ 75,140    $ 63,089     $ 136,691   $ 118,952
Net income available to       $ 75,140    $ 63,088     $ 136,691   $ 118,948
common stockholders-diluted
Diluted net income per share  $ .55       $ .46        $ 1.01      $ .86
Shares:
 Basic                      134,699     136,385      135,014     136,845
 Diluted                    135,708     137,659      135,932     138,024





ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
             Quarter                             Six Months

             Ended June 30,                      Ended June 30,
             2014             2013               2014             2013
             (Unaudited)                         (Unaudited)
REVENUES:
            $ 402,996 34.6%  $ 378,515  35.6%   $ 786,020 34.9%  $ 755,129 36.2%
Accountemps
 OfficeTeam 226,505   19.4%  207,683    19.5%   437,565   19.5%  409,320   19.6%
 Robert
Half         141,988   12.2%  131,751    12.4%   274,293   12.2%  252,752   12.1%
Technology
 Robert
Half         139,549   12.0%  124,120    11.7%   270,730   12.0%  248,290   11.9%
Management
Resources
 Robert
Half Finance 102,827   8.8%   90,347     8.5%    195,452   8.7%   173,724   8.3%
& Accounting
 Protiviti  151,049   13.0%  130,812    12.3%   285,196   12.7%  247,697   11.9%
 Total      $         100.0% $1,063,228 100.0%  $         100.0% $         100.0%
             1,164,914                           2,249,256        2,086,912
GROSS
MARGIN:
 Temporary
and          $ 332,733 36.5%  $ 304,383  36.1%   $ 641,923 36.3%  $ 601,334 36.1%
consultant
staffing
 Permanent
placement    102,781   100.0% 90,310     100.0%  195,383   100.0% 173,658   100.0%
staffing
 Risk
consulting
and internal 42,930    28.4%  37,415     28.6%   79,633    27.9%  67,406    27.2%
audit
services
 Total      $ 478,444 41.1%  $ 432,108  40.6%   $ 916,939 40.8%  $ 842,398 40.4%
OPERATING
INCOME:
 Temporary
and          $ 88,756  9.7%   $ 76,581   9.1%    $ 166,241 9.4%   $ 149,761 9.0%
consultant
staffing
 Permanent
placement    22,448    21.8%  15,477     17.1%   39,723    20.3%  28,062    16.2%
staffing
 Risk
consulting
and internal 12,449    8.2%   8,736      6.7%    19,798    6.9%   12,476    5.0%
audit
services
 Total      $ 123,653 10.6%  $ 100,794  9.5%    $ 225,762 10.0%  $ 190,299 9.1%
SELECTED
CASH FLOW
INFORMATION:

Amortization
of           $ 224            $ 434              $ 557            $ 867
intangible
assets

Depreciation $ 11,863         $ 11,579           $ 24,063         $ 23,326
expense
 Capital    $ 10,642         $ 11,022           $ 23,085         $ 19,104
expenditures
 Open
market
repurchases  481              1,190              1,306            2,026
of common
stock
(shares)





ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)
                                               June 30,
                                              2014            2013
                                              (Unaudited)
SELECTED BALANCE SHEET INFORMATION:
 Cash and cash equivalents             $   307,778   $   246,971
 Accounts receivable, less allowances  $   617,200   $   557,311
 Total assets                          $ 1,588,445    $ 1,428,324
 Current liabilities                   $   580,890   $   534,895
 Notes payable and other indebtedness,
                                              $     1,231 $     1,365
 less current portion
 Total stockholders' equity            $   975,561   $   861,751

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 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 six 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
REVENUE GROWTH RATES (%) (UNAUDITED):
                    Year-Over-Year Growth      Non-GAAP Year-Over-Year Growth
                    Rates                      Rates

                    (As Reported)              (Same Billing Days and Constant
                                               Currency)
              2013                  2014       2013                  2014
Global        Q1    Q2    Q3   Q4   Q1   Q2    Q1    Q2    Q3   Q4   Q1   Q2
Accountemps   -2.3  -0.7  -0.8 -0.4 1.7  6.5   0.2   -1.3  -2.0 -0.3 1.4  6.5
OfficeTeam    0.6   2.4   2.5  3.0  4.7  9.1   3.1   1.6   0.8  2.8  4.0  9.0
RH Technology 4.6   10.2  11.8 14.1 9.3  7.8   7.4   9.5   10.8 14.9 9.5  8.5
RH Management -3.1  -1.2  -0.2 0.7  5.6  12.4  -0.3  -1.5  -0.9 1.1  5.3  12.2
Resources
Temporary and
consultant    -0.8  1.6   1.9  2.7  4.1  8.2   1.8   0.9   0.7  2.9  3.8  8.3
staffing
Permanent
placement     0.6   1.4   7.9  6.6  11.1 13.8  4.0   1.2   7.9  7.8  11.6 14.2
staffing
Total         -0.6  1.6   2.5  3.1  4.8  8.7   2.0   1.0   1.3  3.3  4.5  8.9
staffing
Protiviti     13.6  18.7  16.3 18.0 14.8 15.5  18.9  20.3  16.9 15.6 14.1 14.4
Total         0.8   3.4   4.1  4.8  5.9  9.6   3.9   3.2   3.3  4.9  5.7  9.6
United States
Temporary and
consultant    2.9   4.0   4.5  5.0  5.9  9.3   5.5   3.3   3.3  5.2  5.4  9.8
staffing
Permanent
placement     14.9  10.3  13.8 11.0 12.6 15.8  17.8  9.6   12.5 11.3 12.1 16.3
staffing
Total         3.7   4.5   5.2  5.4  6.4  9.8   6.3   3.8   4.0  5.6  5.9  10.3
staffing
Protiviti     16.6  23.3  22.1 19.6 19.0 19.0  21.3  24.3  21.7 16.5 18.0 18.4
Total         5.1   6.6   7.2  7.1  7.9  11.0  8.1   6.2   6.3  7.1  7.5  11.4
International
Temporary and
consultant    -10.7 -5.8  -5.9 -4.2 -1.2 4.6   -8.2  -6.2  -7.2 -4.2 -1.0 3.3
staffing
Permanent
placement     -16.6 -10.8 -0.8 0.0  8.6  10.6  -12.7 -10.1 1.0  2.7  10.8 10.7
staffing
Total         -11.6 -6.5  -5.2 -3.6 0.1  5.4   -8.8  -6.8  -6.0 -3.3 0.6  4.4
staffing
Protiviti     4.3   4.2   -3.8 12.0 0.4  2.4   11.5  7.9   0.2  12.5 0.8  -0.2
Total         -10.2 -5.5  -5.1 -2.0 0.1  5.1   -6.9  -5.2  -5.3 -1.4 0.6  3.9



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
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
10-12.



ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – GLOBAL
                         Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Accountemps
As Reported              -2.3    -0.7    -0.8    -0.4    1.7     6.5
Billing Days Impact      2.5     -0.6    -1.1    0.2     -0.5    0.4
Currency Impact          0.0     0.0     -0.1    -0.1    0.2     -0.4
Same Billing Days and    0.2     -1.3    -2.0    -0.3    1.4     6.5
Constant Currency
OfficeTeam
As Reported              0.6     2.4     2.5     3.0     4.7     9.1
Billing Days Impact      2.5     -0.7    -1.2    0.2     -0.5    0.5
Currency Impact          0.0     -0.1    -0.5    -0.4    -0.2    -0.6
Same Billing Days and    3.1     1.6     0.8     2.8     4.0     9.0
Constant Currency
Robert Half Technology
As Reported              4.6     10.2    11.8    14.1    9.3     7.8
Billing Days Impact      2.7     -0.8    -1.4    0.3     -0.5    0.5
Currency Impact          0.1     0.1     0.4     0.5     0.7     0.2
Same Billing Days and    7.4     9.5     10.8    14.9    9.5     8.5
Constant Currency
Robert Half Management
Resources
As Reported              -3.1    -1.2    -0.2    0.7     5.6     12.4
Billing Days Impact      2.4     -0.8    -1.1    0.2     -0.4    0.6
Currency Impact          0.4     0.5     0.4     0.2     0.1     -0.8
Same Billing Days and    -0.3    -1.5    -0.9    1.1     5.3     12.2
Constant Currency
Temporary and consultant
staffing
As Reported              -0.8    1.6     1.9     2.7     4.1     8.2
Billing Days Impact      2.5     -0.8    -1.2    0.3     -0.5    0.5
Currency Impact          0.1     0.1     0.0     -0.1    0.2     -0.4
Same Billing Days and    1.8     0.9     0.7     2.9     3.8     8.3
Constant Currency
Permanent placement
staffing
As Reported              0.6     1.4     7.9     6.6     11.1    13.8
Billing Days Impact      2.6     -0.7    -1.2    0.2     -0.5    0.6
Currency Impact          0.8     0.5     1.2     1.0     1.0     -0.2
Same Billing Days and    4.0     1.2     7.9     7.8     11.6    14.2
Constant Currency
Total staffing
As Reported              -0.6    1.6     2.5     3.1     4.8     8.7
Billing Days Impact      2.5     -0.7    -1.3    0.2     -0.5    0.6
Currency Impact          0.1     0.1     0.1     0.0     0.2     -0.4
Same Billing Days and    2.0     1.0     1.3     3.3     4.5     8.9
Constant Currency
Protiviti
As Reported              13.6    18.7    16.3    18.0    14.8    15.5
Billing Days Impact      4.6     0.9     -0.4    -3.2    -1.0    -0.7
Currency Impact          0.7     0.7     1.0     0.8     0.3     -0.4
Same Billing Days and    18.9    20.3    16.9    15.6    14.1    14.4
Constant Currency
Total
As Reported              0.8     3.4     4.1     4.8     5.9     9.6
Billing Days Impact      2.9     -0.4    -1.0    0.0     -0.4    0.4
Currency Impact          0.2     0.2     0.2     0.1     0.2     -0.4
Same Billing Days and    3.9     3.2     3.3     4.9     5.7     9.6
Constant Currency





ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
               Year-Over-Year Revenue Growth – UNITED STATES
                             Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Temporary and consultant
staffing
As Reported                  2.9     4.0     4.5     5.0     5.9     9.3
Billing Days Impact          2.6     -0.7    -1.2    0.2     -0.5    0.5
Currency Impact              ‒       ‒       ‒       ‒       ‒       ‒
Same Billing Days and        5.5     3.3     3.3     5.2     5.4     9.8
Constant Currency
Permanent placement staffing
As Reported                  14.9    10.3    13.8    11.0    12.6    15.8
Billing Days Impact          2.9     -0.7    -1.3    0.3     -0.5    0.5
Currency Impact              ‒       ‒       ‒       ‒       ‒       ‒
Same Billing Days and        17.8    9.6     12.5    11.3    12.1    16.3
Constant Currency
Total staffing
As Reported                  3.7     4.5     5.2     5.4     6.4     9.8
Billing Days Impact          2.6     -0.7    -1.2    0.2     -0.5    0.5
Currency Impact              ‒       ‒       ‒       ‒       ‒       ‒
Same Billing Days and        6.3     3.8     4.0     5.6     5.9     10.3
Constant Currency
Protiviti
As Reported                  16.6    23.3    22.1    19.6    19.0    19.0
Billing Days Impact          4.7     1.0     -0.4    -3.1    -1.0    -0.6
Currency Impact              −       −       −       −       ‒       ‒
Same Billing Days and        21.3    24.3    21.7    16.5    18.0    18.4
Constant Currency
Total
As Reported                  5.1     6.6     7.2     7.1     7.9     11.0
Billing Days Impact          3.0     -0.4    -0.9    0.0     -0.4    0.4
Currency Impact              −       −       −       −       ‒       ‒
Same Billing Days and        8.1     6.2     6.3     7.1     7.5     11.4
Constant Currency





ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES
REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):
Year-Over-Year Revenue Growth – INTERNATIONAL
                               Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014
Temporary and consultant
staffing
As Reported                    -10.7   -5.8    -5.9    -4.2    -1.2    4.6
Billing Days Impact            2.2     -0.7    -1.2    0.2     -0.4    0.4
Currency Impact                0.3     0.3     -0.1    -0.2    0.6     -1.7
Same Billing Days and Constant -8.2    -6.2    -7.2    -4.2    -1.0    3.3
Currency
Permanent placement staffing
As Reported                    -16.6   -10.8   -0.8    0.0     8.6     10.6
Billing Days Impact            2.1     -0.6    -1.2    0.3     -0.5    0.5
Currency Impact                1.8     1.3     3.0     2.4     2.7     -0.4
Same Billing Days and Constant -12.7   -10.1   1.0     2.7     10.8    10.7
Currency
Total staffing
As Reported                    -11.6   -6.5    -5.2    -3.6    0.1     5.4
Billing Days Impact            2.3     -0.7    -1.1    0.1     -0.4    0.5
Currency Impact                0.5     0.4     0.3     0.2     0.9     -1.5
Same Billing Days and Constant -8.8    -6.8    -6.0    -3.3    0.6     4.4
Currency
Protiviti
As Reported                    4.3     4.2     -3.8    12.0    0.4     2.4
Billing Days Impact            4.4     0.8     -0.3    -3.0    -0.8    -0.6
Currency Impact                2.8     2.9     4.3     3.5     1.2     -2.0
Same Billing Days and Constant 11.5    7.9     0.2     12.5    0.8     -0.2
Currency
Total
As Reported                    -10.2   -5.5    -5.1    -2.0    0.1     5.1
Billing Days Impact            2.6     -0.4    -0.9    0.1     -0.5    0.4
Currency Impact                0.7     0.7     0.7     0.5     1.0     -1.6
Same Billing Days and Constant -6.9    -5.2    -5.3    -1.4    0.6     3.9
Currency



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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