EX-99.1 2 dex991.htm PRESS RELEASE 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 FOURTH QUARTER OF 2005

 

MENLO PARK, California, January 26, 2006 – – Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the fourth quarter ended December 31, 2005.

 

For the quarter ended December 31, 2005, net income was $64.6 million or $.37 per share, on revenues of $884.8 million. Net income for the prior year’s fourth quarter was $49.7 million or $.28 per share, on revenues of $754.2 million.

 

For the year ended December 31, 2005, net income was $237.9 million or $1.36 per share, on revenues of $3.3 billion. For the year ended December 31, 2004, net income was $140.6 million or $.79 per share, on revenues of $2.7 billion.

 

Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International, said, “We were pleased with our fourth-quarter financial results – – quarterly revenues and earnings again reached their highest levels in the company’s history. Revenues and income per share for the fourth quarter increased 17 percent and 32 percent, respectively.”

 

Messmer continued, “Our staffing operations had strong results across the board, with all divisions posting solid sequential and year-over-year revenue gains. Fourth-quarter revenues in our staffing operations increased 20 percent over last year and rose 7 percent sequentially on a same-day basis.

 

“Protiviti also performed well during the quarter and continued to broaden its revenue base with growth in outsourced and co-sourced internal audit engagements, as well as business and technology risk consulting services,” he said.

 

Robert Half International management will conduct a conference call today at 5 p.m. ET to discuss the quarterly financial results. The dial-in number is 800-540-0559 (+1-785-832-1508 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. ET today and ending at 8 p.m. ET on February 2. The dial-in number for the replay is 800-688-7339 (+1-402-220-1347 outside the United States). The conference call also will 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 consulting and staffing 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; Robert Half® Technology, for information technology professionals; Robert Half® Legal, for legal personnel; and The Creative Group®, for advertising, marketing and web design professionals. The company’s staffing divisions serve clients and candidates through more than 330 offices worldwide.

 

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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 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

December 31,


   

Year Ended

December 31,


 
     2005

    2004

    2005

    2004

 
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 884,765     $ 754,197     $ 3,338,439     $ 2,675,696  

Direct costs of services

     517,841       450,889       1,965,390       1,619,394  
    


 


 


 


Gross margin

     366,924       303,308       1,373,049       1,056,302  

Selling, general and administrative expenses

     263,657       222,119       991,488       824,382  

Amortization of intangible assets

     94       99       335       1,025  

Interest income

     (3,800 )     (1,265 )     (10,948 )     (3,770 )
    


 


 


 


Income before income taxes

     106,973       82,355       392,174       234,665  

Provision for income taxes

     42,364       32,688       154,304       94,061  
    


 


 


 


Net income

   $ 64,609     $ 49,667     $ 237,870     $ 140,604  
    


 


 


 


Diluted net income per share

   $ .37     $ .28     $ 1.36     $ .79  

Shares:

                                

Basic

     166,965       169,828       167,664       169,742  

Diluted

     174,625       176,769       175,039       176,866  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter Ended

December 31,


  

Year Ended

December 31,


     2005

   2004

   2005

   2004

     (Unaudited)    (Unaudited)     

REVENUES:

                           

Accountemps

   $ 324,387    $ 265,125    $ 1,230,247    $ 993,391

OfficeTeam

     179,103      153,600      679,698      579,753

Robert Half Technology

     81,534      70,230      302,225      265,561

Robert Half Management Resources

     111,062      103,366      428,041      348,763

Robert Half Finance & Accounting

     60,551      36,947      219,234      135,882

Protiviti

     128,128      124,929      478,994      352,346
    

  

  

  

Total

   $ 884,765    $ 754,197    $ 3,338,439    $ 2,675,696
    

  

  

  

GROSS MARGIN:

                           

Temporary and consultant staffing

   $ 257,923    $ 216,701    $ 963,333    $ 787,077

Permanent placement staffing

     60,551      36,947      219,234      135,882

Risk consulting and internal audit services

     48,450      49,660      190,482      133,343
    

  

  

  

Total

   $ 366,924    $ 303,308    $ 1,373,049    $ 1,056,302
    

  

  

  

OPERATING INCOME:

                           

Temporary and consultant staffing

   $ 72,635    $ 49,257    $ 250,161    $ 151,855

Permanent placement staffing

     10,303      4,310      44,602      16,919

Risk consulting and internal audit services

     20,329      27,622      86,798      63,146
    

  

  

  

Total

   $ 103,267    $ 81,189    $ 381,561    $ 231,920
    

  

  

  

SELECTED CASH FLOW INFORMATION:

                           

Amortization of intangible assets

   $ 94    $ 99    $ 335    $ 1,025

Depreciation expense

   $ 13,555    $ 11,693    $ 50,994    $ 48,947

Capital expenditures

   $ 20,745    $ 9,765    $ 61,751    $ 32,867

Open market repurchases of common stock (shares)

     914      497      7,645      2,670

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,

     2005

   2004

     (Unaudited)     

SELECTED BALANCE SHEET INFORMATION:

             

Cash and cash equivalents

   $ 458,358    $ 345,283

Marketable securities

   $ —      $ 91,526

Accounts receivable, less allowances

   $ 451,260    $ 391,641

Total assets

   $ 1,318,686    $ 1,198,657

Current liabilities

   $ 336,701    $ 279,007

Notes payable and other indebtedness, less current portion

   $ 2,698    $ 2,266

Total stockholders’ equity

   $ 970,873    $ 911,870

 

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