EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. JULY 21, 2005, PRESS RELEASE Robert Half International Inc. July 21, 2005, Press Release

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

        

Contact:

 

    M. Keith Waddell

            

    Vice Chairman, President and

            

    Chief Financial Officer

            

    (650) 234-6000

 

ROBERT HALF INTERNATIONAL INC. REPORTS RECORD REVENUES AND EARNINGS FOR THE SECOND QUARTER OF 2005

 

MENLO PARK, California, July 21, 2005 – Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the second quarter ended June 30, 2005.

 

For the quarter ended June 30, 2005, net income was $57.2 million or $.33 per share, on revenues of $816.7 million. Net income for the prior year’s second quarter was $32.4 million or $.18 per share, on revenues of $641.2 million.

 

For the six months ended June 30, 2005, net income was $108.8 million or $.62 per share, on revenues of $1.6 billion. For the six months ended June 30, 2004, net income was $47.9 million or $.27 per share, on revenues of $1.2 billion.

 

“We were pleased with our record financial results for the second quarter of 2005,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc. “Revenues rose 27 percent and income per share increased 81 percent compared with the second quarter of 2004.”

 

“All of our lines of business experienced strong, double-digit growth on a year-over-year basis,” Messmer said. “Our Accountemps, OfficeTeam and Robert Half Technology divisions performed particularly well. In addition, we saw continued high demand within our permanent placement division, Robert Half Finance & Accounting.”

 

Messmer continued, “Protiviti also had a solid quarter. Revenues were up 52 percent compared with the same period last year due to demand for Protiviti’s full suite of internal audit and business and technology risk consulting services.”

 

Robert Half International management will conduct a conference call today at 5 p.m. EDT to discuss the quarterly financial results. The dial-in number is 877-707-9628 (+1-785-832-1523 outside the United States) and the passcode is “Robert Half International.” 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 July 28, 2005. The dial-in number for the replay is 888-214-7993 (+1-402-220-4931 outside the United States). The conference call will also be archived in audio format on the company’s website at www.rhi.com.

 

Founded in 1948, Robert Half International Inc. (RHI) is the world’s first and largest specialized staffing firm. RHI is a recognized leader in professional staffing and consulting services and is the parent company of Protiviti® (www.protiviti.com), a leading independent internal audit and risk consulting firm.

 

The company’s specialized staffing divisions include Accountemps®, Robert Half® Finance & Accounting and Robert Half® Management Resources, for temporary, full-time and project professionals, respectively, in the fields of accounting and finance; OfficeTeam®, for highly skilled temporary administrative support personnel;

 

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Robert Half® Technology, for information technology professionals; Robert Half® Legal, for legal personnel; and The Creative Group®, for advertising, marketing and web design professionals. RHI serves its clients and candidates through more than 330 offices worldwide and through online job search services at its divisional websites, all of which can be accessed at www.rhi.com.

 

Certain information contained in this press release may be deemed forward-looking statements regarding events and financial trends that may affect the company’s future operating results or financial positions. These statements may be identified by words such as “estimate”, “forecast”, “project”, “plan”, “intend”, “believe”, “expect”, “anticipate”, or variations or negatives thereof, or by similar or comparable words or phrases. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.

 

These risks and uncertainties include, but are not limited to, the following: 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; whether governments will impose additional regulations or licensing requirements on personnel services businesses in particular or on employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; and 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.

 

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 press release is available at www.rhi.com.

 

ATTACHED: Summary of Operations

 

Supplemental Financial Information

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

 

    

Quarter

Ended June 30,


   

Six Months

Ended June 30,


 
     2005

    2004

    2005

    2004

 
     (Unaudited)     (Unaudited)  

Net service revenues

   $ 816,711     $ 641,230     $ 1,586,659     $ 1,213,512  

Direct costs of services

     480,430       386,598       936,544       742,853  
    


 


 


 


Gross margin

     336,281       254,632       650,115       470,659  

Selling, general and administrative expenses

     244,071       198,977       474,386       390,108  

Amortization of intangible assets

     74       738       148       827  

Interest income

     (2,147 )     (744 )     (3,979 )     (1,378 )
    


 


 


 


Income before income taxes

     94,283       55,661       179,560       81,102  

Provision for income taxes

     37,054       23,220       70,738       33,245  
    


 


 


 


Net income

   $ 57,229     $ 32,441     $ 108,822     $ 47,857  
    


 


 


 


Diluted net income per share

   $ .33     $ .18     $ .62     $ .27  

Shares:

                                

Basic

     167,285       169,785       168,585       169,548  

Diluted

     172,387       176,889       174,304       175,965  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended June 30,


  

Six Months

Ended June 30,


     2005

   2004

   2005

   2004

     (Unaudited)    (Unaudited)

REVENUES:

             

Accountemps

   $ 304,560    $ 243,027    $ 589,532    $ 471,176

OfficeTeam

     169,181      145,626      325,122      277,129

Robert Half Technology

     73,481      65,447      140,497      124,761

Robert Half Management Resources

     102,283      79,372      207,326      150,120

Robert Half Finance & Accounting

     55,298      34,309      101,527      63,167

Protiviti

     111,908      73,449      222,655      127,159
    

  

  

  

Total

   $ 816,711    $ 641,230    $ 1,586,659    $ 1,213,512
    

  

  

  

GROSS MARGIN:

                           

Temporary and consultant staffing

   $ 235,329    $ 192,154    $ 457,783    $ 363,318

Permanent placement staffing

     55,298      34,309      101,527      63,167

Risk consulting and internal audit services

     45,654      28,169      90,805      44,174
    

  

  

  

Total

   $ 336,281    $ 254,632    $ 650,115    $ 470,659
    

  

  

  

OPERATING INCOME:

                           

Temporary and consultant staffing

   $ 58,020    $ 37,230    $ 110,127    $ 56,229

Permanent placement staffing

     13,218      5,583      22,750      8,256

Risk consulting and internal audit services

     20,972      12,842      42,852      16,066
    

  

  

  

Total

   $ 92,210    $ 55,655    $ 175,729    $ 80,551
    

  

  

  

SELECTED CASH FLOW INFORMATION:

                           

Amortization of intangible assets

   $ 74    $ 738    $ 148    $ 827

Depreciation expense

   $ 11,832    $ 11,529    $ 23,538    $ 24,642

Capital expenditures

   $ 8,822    $ 4,599    $ 21,473    $ 13,200

Open market repurchases of common stock (shares)

     3,393      0      4,948      919

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     June 30,

     2005

   2004

     (Unaudited)

SELECTED BALANCE SHEET INFORMATION:

             

Cash and cash equivalents

   $ 441,057    $ 329,060

Marketable securities

   $ —      $ 90,447

Accounts receivable, less allowances

   $ 417,248    $ 321,724

Total assets

   $ 1,231,444    $ 1,098,677

Current liabilities

   $ 347,319    $ 251,962

Notes payable and other indebtedness, less current portion

   $ 2,753    $ 2,305

Total stockholders’ equity

   $ 877,548    $ 835,640

 

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