UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) January 26, 2012
Robert Half International Inc.
(Exact name of registrant as specified in its charter)
| Delaware | 01-10427 | 94-1648752 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| 2884 Sand Hill Road, Menlo Park, CA | 94025 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code (650) 234-6000
NO CHANGE
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02 | Results of Operations and Financial Condition. |
On January 26, 2012, Robert Half International Inc. issued a press release reporting earnings for the Fourth fiscal quarter of 2011. A copy of the press release is attached hereto as Exhibit 99.1.
The foregoing information in this Current Report on Form 8-K, including exhibit 99.1 attached hereto, is being “furnished” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such future filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit |
Description | |
| 99.1 | Robert Half International Inc. January 26, 2012, Press Release. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Robert Half International Inc. | ||||
| Date: January 26, 2012 | By: | /s/ M. KEITH WADDELL | ||
| Name: | M. Keith Waddell | |||
| Title: | Vice Chairman, President and Chief Financial Officer | |||
Exhibit 99.1
FOR IMMEDIATE RELEASE
| Contact: | M. Keith Waddell Vice Chairman, President and Chief Financial Officer (650) 234-6000 |
ROBERT HALF INTERNATIONAL REPORTS FOURTH-QUARTER FINANCIAL RESULTS
Net Income Per Share Up 78 Percent on High Demand for Skilled Talent
MENLO PARK, California, January 26, 2012 — Robert Half International Inc. (NYSE symbol: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2011.
For the quarter ended December 31, 2011, net income was $42.6 million or $.30 per share, on revenues of $973.5 million. Net income for the prior year’s fourth quarter was $24.8 million or $.17 per share, on revenues of $851.6 million.
For the year ended December 31, 2011, net income was $149.9 million or $1.04 per share, on revenues of $3.78 billion. For the year ended December 31, 2010, net income was $66.1 million or $.44 per share, on revenues of $3.18 billion.
“Our specialized staffing divisions and Protiviti reported solid results in the fourth quarter. This marks the sixth consecutive quarter of double-digit, year-over-year revenue growth for the company,” said Harold M. Messmer, Jr., chairman and CEO of Robert Half International. “Additionally, growth rates in net income and earnings per share have significantly exceeded revenue growth rates during this period. This reflects the ongoing strong demand for skilled talent, particularly in the technology and accounting sectors.”
Robert Half International management will conduct a conference call today at 5 p.m. EST. The dial-in number is 877-814-0475 (+1-706-643-9224 outside the United States). The password to access the call is “Robert Half.” 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 26. 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# 39930039. 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., 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 and internal audit firm composed of experts in risk, advisory and transaction services. 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 International 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.
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 health care 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.rhi.com.
| ATTACHED: | Summary of Operations |
| Supplemental Financial Information |
2
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUMMARY OF OPERATIONS
(in thousands, except per share amounts)
| Quarter | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| Net service revenues |
$ | 973,473 | $ | 851,572 | $ | 3,776,976 | $ | 3,175,093 | ||||||||
| Direct costs of services |
586,151 | 524,665 | 2,287,374 | 1,981,060 | ||||||||||||
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| Gross margin |
387,322 | 326,907 | 1,489,602 | 1,194,033 | ||||||||||||
| Selling, general and administrative expenses |
315,479 | 283,868 | 1,240,184 | 1,079,033 | ||||||||||||
| Amortization of intangible assets |
35 | 49 | 153 | 411 | ||||||||||||
| Interest income |
(353 | ) | (258 | ) | (951 | ) | (579 | ) | ||||||||
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| Income before income taxes |
72,161 | 43,248 | 250,216 | 115,168 | ||||||||||||
| Provision for income taxes |
29,537 | 18,458 | 100,294 | 49,099 | ||||||||||||
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| Net income |
$ | 42,624 | $ | 24,790 | $ | 149,922 | $ | 66,069 | ||||||||
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| Net income available to common stockholders - diluted |
$ | 42,037 | $ | 24,144 | $ | 147,772 | $ | 63,729 | ||||||||
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| Diluted net income per share |
$ | .30 | $ | .17 | $ | 1.04 | $ | .44 | ||||||||
| Shares: |
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| Basic |
138,581 | 141,795 | 140,479 | 142,833 | ||||||||||||
| Diluted |
140,059 | 143,142 | 141,790 | 144,028 | ||||||||||||
3
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
| Quarter | Year | |||||||||||||||
| Ended December 31, | Ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||
| REVENUES: |
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| Accountemps |
$ | 363,820 | $ | 319,066 | $ | 1,405,782 | $ | 1,215,052 | ||||||||
| OfficeTeam |
195,862 | 174,336 | 757,146 | 629,548 | ||||||||||||
| Robert Half Technology |
112,981 | 92,064 | 428,482 | 336,285 | ||||||||||||
| Robert Half Management Resources |
116,563 | 103,128 | 459,589 | 387,370 | ||||||||||||
| Robert Half Finance & Accounting |
74,824 | 59,270 | 302,155 | 221,219 | ||||||||||||
| Protiviti |
109,423 | 103,708 | 423,822 | 385,619 | ||||||||||||
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| Total |
$ | 973,473 | $ | 851,572 | $ | 3,776,976 | $ | 3,175,093 | ||||||||
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| GROSS MARGIN: |
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| Temporary and consultant staffing |
$ | 282,412 | $ | 237,756 | $ | 1,074,006 | $ | 875,557 | ||||||||
| Permanent placement staffing |
74,756 | 59,250 | 301,945 | 221,108 | ||||||||||||
| Risk consulting and internal audit services |
30,154 | 29,901 | 113,651 | 97,368 | ||||||||||||
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| Total |
$ | 387,322 | $ | 326,907 | $ | 1,489,602 | $ | 1,194,033 | ||||||||
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| OPERATING INCOME: |
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| Temporary and consultant staffing |
$ | 63,594 | $ | 35,970 | $ | 209,101 | $ | 108,443 | ||||||||
| Permanent placement staffing |
5,879 | 3,754 | 35,340 | 17,502 | ||||||||||||
| Risk consulting and internal audit services |
2,370 | 3,315 | 4,977 | (10,945 | ) | |||||||||||
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| Total |
$ | 71,843 | $ | 43,039 | $ | 249,418 | $ | 115,000 | ||||||||
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| SELECTED CASH FLOW INFORMATION: |
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| Amortization of intangible assets |
$ | 35 | $ | 49 | $ | 153 | $ | 411 | ||||||||
| Depreciation expense |
$ | 12,753 | $ | 13,177 | $ | 51,262 | $ | 55,547 | ||||||||
| Capital expenditures |
$ | 14,827 | $ | 13,039 | $ | 56,535 | $ | 35,088 | ||||||||
| Open market repurchases of common stock (shares) |
286 | 717 | 5,308 | 3,678 | ||||||||||||
4
ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)
| December 31, | ||||||||
| 2011 | 2010 | |||||||
| (Unaudited) | ||||||||
| SELECTED BALANCE SHEET INFORMATION: |
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| Cash and cash equivalents |
$ | 279,336 | $ | 315,137 | ||||
| Accounts receivable, less allowances |
$ | 493,327 | $ | 423,175 | ||||
| Total assets |
$ | 1,311,836 | $ | 1,273,984 | ||||
| Current liabilities |
$ | 473,001 | $ | 408,460 | ||||
| Notes payable and other indebtedness, less current portion |
$ | 1,545 | $ | 1,656 | ||||
| Total stockholders’ equity |
$ | 800,505 | $ | 834,371 | ||||
5