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 2006

MENLO PARK, California, January 25, 2007 -- Robert Half International Inc. (NYSE symbol: RHI) today reported record revenues and earnings for the fourth quarter ended December 31, 2006.

For the quarter ended December 31, 2006, net income was $75.4 million or $.45 per share, on revenues of $1.1 billion. Net income for the prior year’s fourth quarter was $64.6 million or $.37 per share, on revenues of $884.8 million.

For the year ended December 31, 2006, net income was $283.2 million or $1.65 per share, on revenues of $4.0 billion. For the year ended December 31, 2005, net income was $237.9 million or $1.36 per share, on revenues of $3.3 billion.

“We were pleased with our financial results for the fourth quarter of 2006 and the full year,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International Inc. “We crossed the $4 billion mark in annual revenues for the first time in our company’s history.

“Fourth-quarter revenues were up 20 percent from the prior year, and income per share rose 21 percent from one year ago,” Messmer said. “All of our staffing divisions and Protiviti experienced double-digit revenue growth on a year-over-year basis during the fourth quarter.”

Robert Half International management will conduct a conference call today at 5 p.m. EST following the release. The dial-in number is 1-800-896-8445 (+1-785-830-1916 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. EST today and ending at 8 p.m. EST on February 1. The dial-in number for the replay is 1-800-688-9459 (+1-402-220-1373 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. 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 has staffing and consulting operations in more than 400 locations worldwide.

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.

 

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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 December 31,

   

Year

Ended December 31,

 
     2006     2005     2006     2005  
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 1,060,234     $ 884,765     $ 4,013,546     $ 3,338,439  

Direct costs of services

     609,184       517,841       2,319,293       1,965,390  
                                

Gross margin

     451,050       366,924       1,694,253       1,373,049  

Selling, general and administrative expenses

     331,565       263,657       1,243,952       991,488  

Amortization of intangible assets

     246       94       851       335  

Interest income

     (4,252 )     (3,800 )     (16,752 )     (10,948 )
                                

Income before income taxes

     123,491       106,973       466,202       392,174  

Provision for income taxes

     48,118       42,364       183,024       154,304  
                                

Net income

   $ 75,373     $ 64,609     $ 283,178     $ 237,870  
                                

Diluted net income per share

   $ .45     $ .37     $ 1.65     $ 1.36  

Shares:

        

Basic

     163,695       166,965       166,003       167,664  

Diluted

     168,846       174,582       171,712       174,382  

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

    

Quarter

Ended December 31,

  

Year

Ended December 31,

     2006    2005    2006    2005
     (Unaudited)    (Unaudited)     

REVENUES:

           

Accountemps

   $ 389,265    $ 324,387    $ 1,485,105    $ 1,230,247

OfficeTeam

     201,410      179,103      776,425      679,698

Robert Half Technology

     94,409      81,534      358,480      302,225

Robert Half Management Resources

     136,294      111,062      513,876      428,041

Robert Half Finance & Accounting

     86,751      60,551      336,250      219,234

Protiviti

     152,105      128,128      543,410      478,994
                           

Total

   $ 1,060,234    $ 884,765    $ 4,013,546    $ 3,338,439
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 305,325    $ 257,923    $ 1,158,887    $ 963,333

Permanent placement staffing

     86,751      60,551      336,250      219,234

Risk consulting and internal audit services

     58,974      48,450      199,116      190,482
                           

Total

   $ 451,050    $ 366,924    $ 1,694,253    $ 1,373,049
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 82,465    $ 72,635    $ 314,754    $ 250,161

Permanent placement staffing

     16,717      10,303      74,757      44,602

Risk consulting and internal audit services

     20,303      20,329      60,790      86,798
                           

Total

   $ 119,485    $ 103,267    $ 450,301    $ 381,561
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 246    $ 94    $ 851    $ 335

Stock options expense

   $ 3,780    $    $ 17,628    $

Depreciation expense

   $ 15,264    $ 13,555    $ 60,234    $ 50,994

Capital expenditures

   $ 16,309    $ 20,745    $ 80,446    $ 61,751

Open market repurchases of common stock (shares)

     819      914      7,892      7,645

 

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ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,
     2006    2005
     (Unaudited)     

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 447,479    $ 458,358

Accounts receivable, less allowances

   $ 531,824    $ 451,260

Total assets

   $ 1,459,021    $ 1,318,686

Current liabilities

   $ 402,740    $ 336,701

Notes payable and other indebtedness, less current portion

   $ 3,831    $ 2,698

Total stockholders’ equity

   $ 1,042,671    $ 970,873

 

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