EX-99.1 2 dex991.htm ROBERT HALF INTERNATIONAL INC. JANUARY 28, 2009, PRESS RELEASE Robert Half International Inc. January 28, 2009, 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 REVENUES AND EARNINGS FOR THE FOURTH QUARTER OF 2008

MENLO PARK, California, January 28, 2009 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2008.

For the quarter ended December 31, 2008, net income was $39.0 million or $.26 per share, on revenues of $989.8 million. Net income for the prior year’s fourth quarter was $78.8 million or $.50 per share, on revenues of $1.22 billion.

For the year ended December 31, 2008, net income was $250.2 million or $1.63 per share, on revenues of $4.60 billion. For the year ended December 31, 2007, net income was $296.2 million or $1.81 per share, on revenues of $4.65 billion.

“Our financial results were impacted in North America and across the globe by very difficult labor markets, which weakened as the quarter progressed,” said Harold M. Messmer, Jr., chairman and chief executive officer of Robert Half International Inc. “We are faced with a great deal of economic uncertainty right now, but our financial condition remains solid, our competitive position remains strong, and our experienced field management team is both capable and determined. I am confident in their strength and experience as we navigate these rough waters.”

Robert Half International management will conduct a conference call today at 5 p.m. EST following the release. The dial-in number is 800-862-9098 (+1-785-424-1051 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 4. The dial-in number for the replay is 800-839-5685 (+1-402-220-2567 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. It also is the parent company of Protiviti®, a global consulting and internal audit firm composed of experts in risk and advisory services. Robert Half’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.

Robert Half International has staffing and consulting operations in more than 400 locations worldwide.

 

(more)


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: 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; 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


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)

 

     Quarter Ended
December 31,
    Year Ended
December 31,
 
     2008     2007     2008     2007  
     (Unaudited)     (Unaudited)        

Net service revenues

   $ 989,837     $ 1,220,068     $ 4,600,554     $ 4,645,666  

Direct costs of services

     587,451       696,447       2,686,983       2,667,838  
                                

Gross margin

     402,386       523,621       1,913,571       1,977,828  

Selling, general and administrative expenses

     334,895       393,911       1,496,839       1,497,957  

Amortization of intangible assets

     740       754       2,617       2,594  

Interest income

     (323 )     (2,912 )     (5,161 )     (13,127 )
                                

Income before income taxes

     67,074       131,868       419,276       490,404  

Provision for income taxes

     28,066       53,052       169,095       194,192  
                                

Net income

   $ 39,008     $ 78,816     $ 250,181     $ 296,212  
                                

Diluted net income per share

   $ .26     $ .50     $ 1.63     $ 1.81  

Shares:

        

Basic

     148,190       156,068       151,607       159,767  

Diluted

     149,496       158,459       153,289       163,479  


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     Quarter Ended
December 31,
   Year Ended
December 31,
     2008    2007    2008    2007
     (Unaudited)    (Unaudited)     

REVENUES:

           

Accountemps

   $ 374,179    $ 453,054    $ 1,735,412    $ 1,744,820

OfficeTeam

     179,882      222,212      827,559      860,744

Robert Half Technology

     101,360      110,841      437,477      425,086

Robert Half Management Resources

     134,654      165,276      625,735      618,624

Robert Half Finance & Accounting

     75,578      117,590      427,499      444,090

Protiviti

     124,184      151,095      546,872      552,302
                           

Total

   $ 989,837    $ 1,220,068    $ 4,600,554    $ 4,645,666
                           

GROSS MARGIN:

           

Temporary and consultant staffing

   $ 292,564    $ 357,423    $ 1,331,549    $ 1,359,075

Permanent placement staffing

     75,546      117,576      427,375      444,071

Risk consulting and internal audit services

     34,276      48,622      154,647      174,682
                           

Total

   $ 402,386    $ 523,621    $ 1,913,571    $ 1,977,828
                           

OPERATING INCOME:

           

Temporary and consultant staffing

   $ 63,421    $ 98,925    $ 348,963    $ 372,892

Permanent placement staffing

     2,589      21,906      60,482      86,109

Risk consulting and internal audit services

     1,481      8,879      7,287      20,870
                           

Total

   $ 67,491    $ 129,710    $ 416,732    $ 479,871
                           

SELECTED CASH FLOW INFORMATION:

           

Amortization of intangible assets

   $ 740    $ 754    $ 2,617    $ 2,594

Depreciation expense

   $ 16,708    $ 17,762    $ 70,593    $ 68,847

Capital expenditures

   $ 17,926    $ 20,185    $ 73,413    $ 83,777

Open market repurchases of common stock (shares)

     4,018      3,041      9,376      12,202


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)

 

     December 31,
     2008    2007
     (Unaudited)     

SELECTED BALANCE SHEET INFORMATION:

     

Cash and cash equivalents

   $ 344,896    $ 310,000

Accounts receivable, less allowances

   $ 484,808    $ 593,169

Total assets

   $ 1,401,989    $ 1,450,298

Current liabilities

   $ 402,991    $ 447,952

Notes payable and other indebtedness, less current portion

   $ 1,892    $ 3,753

Total stockholders’ equity

   $ 983,888    $ 984,049