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) |
¨ | 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. |
Item 9.01 | Financial Statements and Exhibits. |
(d) | Exhibits |
Exhibit | Description | |
99.1 | Robert Half International Inc. July 26, 2016, Press Release. |
Robert Half International Inc. | ||||
Date: July 26, 2016 | By: | /s/ M. KEITH WADDELL | ||
Name: | M. Keith Waddell | |||
Title: | Vice Chairman, President and Chief Financial Officer |
Contact: | M. Keith Waddell Vice Chairman, President and Chief Financial Officer (650) 234-6000 |
ATTACHED: | Summary of Operations Supplemental Financial Information Non-GAAP Financial Measures |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Net service revenues | $ | 1,344,160 | $ | 1,272,058 | $ | 2,646,785 | $ | 2,477,621 | ||||||||
Direct costs of services | 787,167 | 741,556 | 1,557,820 | 1,453,032 | ||||||||||||
Gross margin | 556,993 | 530,502 | 1,088,965 | 1,024,589 | ||||||||||||
Selling, general and administrative expenses | 407,496 | 381,355 | 805,570 | 747,340 | ||||||||||||
Amortization of intangible assets | 314 | — | 602 | — | ||||||||||||
Interest income, net | (231 | ) | (88 | ) | (412 | ) | (160 | ) | ||||||||
Income before income taxes | 149,414 | 149,235 | 283,205 | 277,409 | ||||||||||||
Provision for income taxes | 57,798 | 59,529 | 108,173 | 109,781 | ||||||||||||
Net income | $ | 91,616 | $ | 89,706 | $ | 175,032 | $ | 167,628 | ||||||||
Diluted net income per share | $ | .71 | $ | .67 | $ | 1.35 | $ | 1.25 | ||||||||
Shares: | ||||||||||||||||
Basic | 128,586 | 132,499 | 128,933 | 132,786 | ||||||||||||
Diluted | 129,329 | 133,553 | 129,733 | 133,918 |
Quarter Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
REVENUES: | ||||||||||||||||||||||||||||
Accountemps | $ | 460,242 | 34.2 | % | $ | 429,533 | 33.8 | % | $ | 908,780 | 34.3 | % | $ | 843,375 | 34.0 | % | ||||||||||||
OfficeTeam | 246,391 | 18.3 | % | 242,102 | 19.0 | % | 487,111 | 18.4 | % | 473,195 | 19.1 | % | ||||||||||||||||
Robert Half Technology | 168,605 | 12.6 | % | 165,618 | 13.0 | % | 332,878 | 12.6 | % | 319,362 | 12.9 | % | ||||||||||||||||
Robert Half Management Resources | 156,845 | 11.7 | % | 142,349 | 11.2 | % | 312,479 | 11.8 | % | 287,188 | 11.6 | % | ||||||||||||||||
Robert Half Finance & Accounting | 113,439 | 8.4 | % | 110,583 | 8.7 | % | 219,728 | 8.3 | % | 208,996 | 8.4 | % | ||||||||||||||||
Protiviti | 198,638 | 14.8 | % | 181,873 | 14.3 | % | 385,809 | 14.6 | % | 345,505 | 14.0 | % | ||||||||||||||||
Total | $ | 1,344,160 | 100.0 | % | $ | 1,272,058 | 100.0 | % | $ | 2,646,785 | 100.0 | % | $ | 2,477,621 | 100.0 | % | ||||||||||||
GROSS MARGIN: | ||||||||||||||||||||||||||||
Temporary and consultant staffing | $ | 387,955 | 37.6 | % | $ | 365,804 | 37.3 | % | $ | 762,543 | 37.4 | % | $ | 714,562 | 37.2 | % | ||||||||||||
Permanent placement staffing | 113,228 | 99.8 | % | 110,377 | 99.8 | % | 219,367 | 99.8 | % | 208,616 | 99.8 | % | ||||||||||||||||
Risk consulting and internal audit services | 55,810 | 28.1 | % | 54,321 | 29.9 | % | 107,055 | 27.7 | % | 101,411 | 29.4 | % | ||||||||||||||||
Total | $ | 556,993 | 41.4 | % | $ | 530,502 | 41.7 | % | $ | 1,088,965 | 41.1 | % | $ | 1,024,589 | 41.4 | % | ||||||||||||
OPERATING INCOME: | ||||||||||||||||||||||||||||
Temporary and consultant staffing | $ | 107,133 | 10.4 | % | $ | 104,612 | 10.7 | % | $ | 205,016 | 10.0 | % | $ | 197,413 | 10.3 | % | ||||||||||||
Permanent placement staffing | 24,576 | 21.7 | % | 24,052 | 21.8 | % | 46,078 | 21.0 | % | 43,083 | 20.6 | % | ||||||||||||||||
Risk consulting and internal audit services | 17,788 | 9.0 | % | 20,483 | 11.3 | % | 32,301 | 8.4 | % | 36,753 | 10.6 | % | ||||||||||||||||
Total | $ | 149,497 | 11.1 | % | $ | 149,147 | 11.7 | % | $ | 283,395 | 10.7 | % | $ | 277,249 | 11.2 | % | ||||||||||||
SELECTED CASH FLOW INFORMATION: | ||||||||||||||||||||||||||||
Amortization of intangible assets | $ | 314 | $ | — | $ | 602 | $ | — | ||||||||||||||||||||
Depreciation expense | $ | 15,587 | $ | 13,562 | $ | 30,710 | $ | 26,568 | ||||||||||||||||||||
Capital expenditures | $ | 24,930 | $ | 16,177 | $ | 43,740 | $ | 29,523 | ||||||||||||||||||||
Open market repurchases of common stock (shares) | 1,012 | 900 | 1,694 | 1,381 |
June 30, | ||||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
SELECTED BALANCE SHEET INFORMATION: | ||||||||
Cash and cash equivalents | $ | 238,714 | $ | 313,131 | ||||
Accounts receivable, less allowances | $ | 732,193 | $ | 687,029 | ||||
Total assets | $ | 1,783,008 | $ | 1,723,200 | ||||
Current liabilities | $ | 668,179 | $ | 663,799 | ||||
Notes payable and other indebtedness, less current portion | $ | 925 | $ | 1,085 | ||||
Total stockholders’ equity | $ | 1,069,508 | $ | 1,014,675 |
Year-Over-Year Growth Rates (As Reported) | Non-GAAP Year-Over-Year Growth Rates (Same Billing Days and Constant Currency) | |||||||||||||||||||||||
2015 | 2016 | 2015 | 2016 | |||||||||||||||||||||
Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | |||||||||||||
Global | ||||||||||||||||||||||||
Accountemps | 8.0 | 6.6 | 4.3 | 5.8 | 8.4 | 7.1 | 12.2 | 10.1 | 7.6 | 7.5 | 8.3 | 6.5 | ||||||||||||
OfficeTeam | 9.5 | 6.9 | 4.8 | 4.1 | 4.2 | 1.8 | 14.1 | 10.8 | 8.3 | 5.8 | 3.7 | 0.6 | ||||||||||||
RH Technology | 16.2 | 16.6 | 13.3 | 9.6 | 6.8 | 1.8 | 19.0 | 18.8 | 15.4 | 10.2 | 6.2 | 0.9 | ||||||||||||
RH Management Resources | 10.4 | 2.0 | -2.4 | 4.0 | 7.5 | 10.2 | 17.3 | 7.9 | 2.9 | 7.1 | 7.7 | 9.4 | ||||||||||||
Temporary and consultant staffing | 10.0 | 7.5 | 4.8 | 5.7 | 7.0 | 5.4 | 14.5 | 11.3 | 8.3 | 7.4 | 6.7 | 4.5 | ||||||||||||
Permanent placement staffing | 6.2 | 7.5 | 8.2 | 5.1 | 8.0 | 2.6 | 11.9 | 13.0 | 13.6 | 8.2 | 8.6 | 2.1 | ||||||||||||
Total staffing | 9.7 | 7.5 | 5.1 | 5.7 | 7.1 | 5.1 | 14.2 | 11.5 | 8.8 | 7.5 | 6.9 | 4.3 | ||||||||||||
Protiviti | 22.0 | 20.4 | 20.5 | 13.9 | 14.4 | 9.2 | 26.6 | 23.4 | 23.0 | 15.4 | 13.7 | 8.3 | ||||||||||||
Total | 11.2 | 9.2 | 7.2 | 6.8 | 8.1 | 5.7 | 15.9 | 13.1 | 10.9 | 8.7 | 7.8 | 4.9 | ||||||||||||
United States | ||||||||||||||||||||||||
Temporary and consultant staffing | 14.8 | 12.4 | 9.9 | 9.2 | 8.5 | 4.6 | 15.6 | 12.4 | 9.8 | 8.2 | 7.3 | 3.5 | ||||||||||||
Permanent placement staffing | 15.6 | 18.7 | 16.2 | 11.5 | 12.9 | 3.8 | 16.4 | 18.6 | 16.1 | 10.5 | 11.6 | 2.7 | ||||||||||||
Total staffing | 14.8 | 12.9 | 10.4 | 9.4 | 8.9 | 4.5 | 15.7 | 12.9 | 10.3 | 8.4 | 7.6 | 3.4 | ||||||||||||
Protiviti | 26.2 | 24.3 | 24.6 | 15.5 | 16.2 | 7.6 | 27.9 | 24.1 | 24.4 | 15.1 | 14.9 | 6.5 | ||||||||||||
Total | 16.3 | 14.5 | 12.5 | 10.3 | 9.9 | 5.0 | 17.5 | 14.5 | 12.6 | 9.5 | 8.7 | 3.9 | ||||||||||||
International | ||||||||||||||||||||||||
Temporary and consultant staffing | -6.0 | -9.3 | -12.8 | -7.2 | 0.5 | 8.6 | 10.6 | 7.7 | 3.1 | 4.4 | 4.5 | 8.9 | ||||||||||||
Permanent placement staffing | -9.8 | -11.9 | -7.3 | -7.8 | -2.8 | -0.3 | 4.0 | 3.1 | 8.9 | 3.5 | 2.0 | 0.8 | ||||||||||||
Total staffing | -6.6 | -9.7 | -12.1 | -7.3 | 0.0 | 7.2 | 9.6 | 7.0 | 3.9 | 4.3 | 4.1 | 7.7 | ||||||||||||
Protiviti | 4.8 | 4.0 | 1.2 | 6.0 | 5.4 | 17.3 | 21.3 | 20.4 | 16.4 | 16.9 | 8.0 | 17.5 | ||||||||||||
Total | -5.4 | -8.2 | -10.7 | -5.8 | 0.6 | 8.4 | 11.0 | 8.5 | 5.3 | 5.9 | 4.6 | 8.9 |
Year-Over-Year Revenue Growth – GLOBAL | |||||||||||||||||
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | ||||||||||||
Accountemps | |||||||||||||||||
As Reported | 8.0 | 6.6 | 4.3 | 5.8 | 8.4 | 7.1 | |||||||||||
Billing Days Impact | 0.9 | -0.1 | -0.2 | -0.9 | -1.2 | -1.1 | |||||||||||
Currency Impact | 3.3 | 3.6 | 3.5 | 2.6 | 1.1 | 0.5 | |||||||||||
Same Billing Days and Constant Currency | 12.2 | 10.1 | 7.6 | 7.5 | 8.3 | 6.5 | |||||||||||
OfficeTeam | |||||||||||||||||
As Reported | 9.5 | 6.9 | 4.8 | 4.1 | 4.2 | 1.8 | |||||||||||
Billing Days Impact | 0.8 | -0.1 | -0.2 | -1.0 | -1.2 | -1.1 | |||||||||||
Currency Impact | 3.8 | 4.0 | 3.7 | 2.7 | 0.7 | -0.1 | |||||||||||
Same Billing Days and Constant Currency | 14.1 | 10.8 | 8.3 | 5.8 | 3.7 | 0.6 | |||||||||||
Robert Half Technology | |||||||||||||||||
As Reported | 16.2 | 16.6 | 13.3 | 9.6 | 6.8 | 1.8 | |||||||||||
Billing Days Impact | 0.9 | 0.0 | -0.1 | -1.0 | -1.2 | -1.1 | |||||||||||
Currency Impact | 1.9 | 2.2 | 2.2 | 1.6 | 0.6 | 0.2 | |||||||||||
Same Billing Days and Constant Currency | 19.0 | 18.8 | 15.4 | 10.2 | 6.2 | 0.9 | |||||||||||
Robert Half Management Resources | |||||||||||||||||
As Reported | 10.4 | 2.0 | -2.4 | 4.0 | 7.5 | 10.2 | |||||||||||
Billing Days Impact | 0.9 | 0.0 | 0.0 | -1.0 | -1.3 | -1.2 | |||||||||||
Currency Impact | 6.0 | 5.9 | 5.3 | 4.1 | 1.5 | 0.4 | |||||||||||
Same Billing Days and Constant Currency | 17.3 | 7.9 | 2.9 | 7.1 | 7.7 | 9.4 | |||||||||||
Temporary and consultant staffing | |||||||||||||||||
As Reported | 10.0 | 7.5 | 4.8 | 5.7 | 7.0 | 5.4 | |||||||||||
Billing Days Impact | 0.9 | 0.0 | -0.1 | -1.0 | -1.3 | -1.2 | |||||||||||
Currency Impact | 3.6 | 3.8 | 3.6 | 2.7 | 1.0 | 0.3 | |||||||||||
Same Billing Days and Constant Currency | 14.5 | 11.3 | 8.3 | 7.4 | 6.7 | 4.5 | |||||||||||
Permanent placement staffing | |||||||||||||||||
As Reported | 6.2 | 7.5 | 8.2 | 5.1 | 8.0 | 2.6 | |||||||||||
Billing Days Impact | 0.9 | 0.0 | -0.2 | -0.9 | -1.2 | -1.2 | |||||||||||
Currency Impact | 4.8 | 5.5 | 5.6 | 4.0 | 1.8 | 0.7 | |||||||||||
Same Billing Days and Constant Currency | 11.9 | 13.0 | 13.6 | 8.2 | 8.6 | 2.1 | |||||||||||
Total staffing | |||||||||||||||||
As Reported | 9.7 | 7.5 | 5.1 | 5.7 | 7.1 | 5.1 | |||||||||||
Billing Days Impact | 0.8 | 0.0 | -0.1 | -1.0 | -1.3 | -1.1 | |||||||||||
Currency Impact | 3.7 | 4.0 | 3.8 | 2.8 | 1.1 | 0.3 | |||||||||||
Same Billing Days and Constant Currency | 14.2 | 11.5 | 8.8 | 7.5 | 6.9 | 4.3 | |||||||||||
Protiviti | |||||||||||||||||
As Reported | 22.0 | 20.4 | 20.5 | 13.9 | 14.4 | 9.2 | |||||||||||
Billing Days Impact | 1.6 | -0.1 | -0.2 | -0.4 | -1.4 | -1.1 | |||||||||||
Currency Impact | 3.0 | 3.1 | 2.7 | 1.9 | 0.7 | 0.2 | |||||||||||
Same Billing Days and Constant Currency | 26.6 | 23.4 | 23.0 | 15.4 | 13.7 | 8.3 | |||||||||||
Total | |||||||||||||||||
As Reported | 11.2 | 9.2 | 7.2 | 6.8 | 8.1 | 5.7 | |||||||||||
Billing Days Impact | 1.1 | 0.0 | 0.0 | -0.8 | -1.3 | -1.1 | |||||||||||
Currency Impact | 3.6 | 3.9 | 3.7 | 2.7 | 1.0 | 0.3 | |||||||||||
Same Billing Days and Constant Currency | 15.9 | 13.1 | 10.9 | 8.7 | 7.8 | 4.9 |
Year-Over-Year Revenue Growth – UNITED STATES | |||||||||||||||||
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | ||||||||||||
Temporary and consultant staffing | |||||||||||||||||
As Reported | 14.8 | 12.4 | 9.9 | 9.2 | 8.5 | 4.6 | |||||||||||
Billing Days Impact | 0.8 | 0.0 | -0.1 | -1.0 | -1.2 | -1.1 | |||||||||||
Currency Impact | — | — | — | — | — | — | |||||||||||
Same Billing Days and Constant Currency | 15.6 | 12.4 | 9.8 | 8.2 | 7.3 | 3.5 | |||||||||||
Permanent placement staffing | |||||||||||||||||
As Reported | 15.6 | 18.7 | 16.2 | 11.5 | 12.9 | 3.8 | |||||||||||
Billing Days Impact | 0.8 | 0.0 | -0.1 | -1.0 | -1.3 | -1.1 | |||||||||||
Currency Impact | — | — | — | — | — | — | |||||||||||
Same Billing Days and Constant Currency | 16.4 | 18.7 | 16.1 | 10.5 | 11.6 | 2.7 | |||||||||||
Total staffing | |||||||||||||||||
As Reported | 14.8 | 12.9 | 10.4 | 9.4 | 8.9 | 4.5 | |||||||||||
Billing Days Impact | 0.9 | 0.0 | -0.1 | -1.0 | -1.3 | -1.1 | |||||||||||
Currency Impact | — | — | — | — | — | — | |||||||||||
Same Billing Days and Constant Currency | 15.7 | 12.9 | 10.3 | 8.4 | 7.6 | 3.4 | |||||||||||
Protiviti | |||||||||||||||||
As Reported | 26.2 | 24.3 | 24.6 | 15.5 | 16.2 | 7.6 | |||||||||||
Billing Days Impact | 1.7 | -0.2 | -0.2 | -0.4 | -1.3 | -1.1 | |||||||||||
Currency Impact | — | — | — | — | — | — | |||||||||||
Same Billing Days and Constant Currency | 27.9 | 24.1 | 24.4 | 15.1 | 14.9 | 6.5 | |||||||||||
Total | |||||||||||||||||
As Reported | 16.3 | 14.5 | 12.5 | 10.3 | 9.9 | 5.0 | |||||||||||
Billing Days Impact | 1.2 | 0.0 | 0.1 | -0.8 | -1.2 | -1.1 | |||||||||||
Currency Impact | — | — | — | — | — | — | |||||||||||
Same Billing Days and Constant Currency | 17.5 | 14.5 | 12.6 | 9.5 | 8.7 | 3.9 |
Year-Over-Year Revenue Growth – INTERNATIONAL | ||||||||||||||||||
Q1 2015 | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | |||||||||||||
Temporary and consultant staffing | ||||||||||||||||||
As Reported | -6.0 | -9.3 | -12.8 | -7.2 | 0.5 | 8.6 | ||||||||||||
Billing Days Impact | 0.8 | 0.0 | -0.2 | -1.0 | -1.2 | -1.2 | ||||||||||||
Currency Impact | 15.8 | 17.0 | 16.1 | 12.6 | 5.2 | 1.5 | ||||||||||||
Same Billing Days and Constant Currency | 10.6 | 7.7 | 3.1 | 4.4 | 4.5 | 8.9 | ||||||||||||
Permanent placement staffing | ||||||||||||||||||
As Reported | -9.8 | -11.9 | -7.3 | -7.8 | -2.8 | -0.3 | ||||||||||||
Billing Days Impact | 0.7 | 0.0 | -0.1 | -1.0 | -1.1 | -1.1 | ||||||||||||
Currency Impact | 13.1 | 15.0 | 16.3 | 12.3 | 5.9 | 2.2 | ||||||||||||
Same Billing Days and Constant Currency | 4.0 | 3.1 | 8.9 | 3.5 | 2.0 | 0.8 | ||||||||||||
Total staffing | ||||||||||||||||||
As Reported | -6.6 | -9.7 | -12.1 | -7.3 | 0.0 | 7.2 | ||||||||||||
Billing Days Impact | 0.8 | 0.0 | -0.1 | -1.0 | -1.2 | -1.1 | ||||||||||||
Currency Impact | 15.4 | 16.7 | 16.1 | 12.6 | 5.3 | 1.6 | ||||||||||||
Same Billing Days and Constant Currency | 9.6 | 7.0 | 3.9 | 4.3 | 4.1 | 7.7 | ||||||||||||
Protiviti | ||||||||||||||||||
As Reported | 4.8 | 4.0 | 1.2 | 6.0 | 5.4 | 17.3 | ||||||||||||
Billing Days Impact | 1.6 | -0.1 | -0.2 | -0.4 | -1.3 | -1.3 | ||||||||||||
Currency Impact | 14.9 | 16.5 | 15.4 | 11.3 | 3.9 | 1.5 | ||||||||||||
Same Billing Days and Constant Currency | 21.3 | 20.4 | 16.4 | 16.9 | 8.0 | 17.5 | ||||||||||||
Total | ||||||||||||||||||
As Reported | -5.4 | -8.2 | -10.7 | -5.8 | 0.6 | 8.4 | ||||||||||||
Billing Days Impact | 1.1 | 0.0 | 0.0 | -0.7 | -1.1 | -1.1 | ||||||||||||
Currency Impact | 15.3 | 16.7 | 16.0 | 12.4 | 5.1 | 1.6 | ||||||||||||
Same Billing Days and Constant Currency | 11.0 | 8.5 | 5.3 | 5.9 | 4.6 | 8.9 |