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Robert Half Reports Fourth-Quarter Financial Results

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MENLO PARK, Calif., Jan. 28, 2021 /CNW/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2020.

Robert Half (PRNewsfoto/Robert Half)
Robert Half (PRNewsfoto/Robert Half)

For the quarter ended December 31, 2020, net income was $94 million, or $.84 per share, on revenues of $1.304 billion. Net income for the prior year's fourth quarter was $113 million, or $.98 per share, on revenues of $1.537 billion.

For the year ended December 31, 2020, net income was $306 million, or $2.70 per share, on revenues of $5.109 billion. For the year ended December 31, 2019, net income was $454 million, or $3.90 per share, on revenues of $6.074 billion.

"Fourth-quarter results for both our Protiviti and staffing operations were very strong and exceeded the top end of our guidance range," said M. Keith Waddell, president and CEO of Robert Half. "Protiviti reported its 13th consecutive quarter of year-on-year revenue gains, with particular strength in its technology consulting practice and managed solutions with staffing. Our staffing operations reported broad-based, double-digit, quarter-on-quarter sequential revenue growth on an as-adjusted basis."

Waddell added, "Return on invested capital for the company was 31 percent in the fourth quarter."

Robert Half management will conduct a conference call today at 5 p.m. EST. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today's conference call is 877-814-0475 (+1-706-643-9224 outside the United States). The password 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 11:59 p.m. EST on February 27. 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# 1755918. The conference call also will be archived in audio format on the company's website at www.roberthalf.com/investor-center.

Founded in 1948, Robert Half is the world's first and largest specialized staffing firm and a recognized leader in professional consulting and staffing services. The company's specialized staffing divisions include Accountemps®, Robert Half® Finance & Accounting and Robert Half® Management Resources, for contract, full-time and senior-level project professionals, respectively, in the fields of accounting and finance; OfficeTeam®, for highly skilled administrative support professionals; Robert Half® Technology, for project and full-time technology professionals; Robert Half® Legal, for project and full-time staffing of lawyers, paralegals and legal support personnel; and The Creative Group®, for creative, digital, marketing, advertising and public relations professionals. Robert Half also is the parent company of Protiviti®, a global consulting firm that provides clients with consulting solutions in finance, technology, operations, data, analytics, governance, risk and internal audit.

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

Certain information contained in this press release and its attachments 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 to or new interpretations of U.S. or international tax regulations; the global financial and economic situation; the duration and impact of the COVID-19 pandemic and efforts to mitigate its spread; 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 contract 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 contract employees, or for events impacting its contract 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 healthcare 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.roberthalf.com/investor-center.

ATTACHED:


Summary of Operations

Supplemental Financial Information

Non-GAAP Financial Measures


ROBERT HALF INTERNATIONAL INC.

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)



Quarter

Ended December 31,


Year

Ended December 31,


2020


2019


2020


2019


(Unaudited)


(Unaudited)











Service revenues

$

1,304,086



$

1,537,385



$

5,109,000



$

6,074,432


Costs of services

789,744



900,524



3,096,389



3,549,303










Gross margin

514,342



636,861



2,012,611



2,525,129










Selling, general and administrative expenses

425,161



503,922



1,666,041



1,958,295


Income from investments held in employee deferred compensation(which is completely offset by related costs and expenses) (1)

(40,542)



(20,289)



(75,188)



(54,917)


Amortization of intangible assets

217



339



1,219



1,361


Interest income, net

(79)



(1,357)



(1,343)



(5,125)










Income before income taxes

129,585



154,246



421,882



625,515


Provision for income taxes

35,169



41,404



115,606



171,082










Net income

$

94,416



$

112,842



$

306,276



$

454,433










Diluted net income per share

$

.84



$

.98



$

2.70



$

3.90










Shares:








Basic

112,059



114,034



112,729



115,656


Diluted

112,941



114,862



113,318



116,411



(1) Selling, general and administrative ("SG&A") expenses exclude gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. Under these plans, employees direct the investment of their account balances, and the Company makes cash deposits into an investment trust consistent with these directions. Changes in the Company's deferred compensation obligations noted above are included in SG&A or, in the case of Protiviti, direct cost, while investment income is presented separately. Reclassifications have been made to prior periods' consolidated financial statements to conform to the current presentation. These reclassifications had no impact to previously reported income before income taxes.

ROBERT HALF INTERNATIONAL INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




Quarter

Ended December 31,


Year

Ended December 31,



2020


2019


2020


2019



(Unaudited)


(Unaudited)





SERVICE REVENUES:

















Accountemps


$

385,000



29.5

%


$

498,650



32.4

%


$

1,558,024



30.5

%


$

1,985,221



32.6

%

OfficeTeam


214,985



16.5

%


259,147


16.9

%


764,947



15.0

%


1,040,755



17.1

%

Robert Half Technology


175,730



13.5

%


198,314


12.9

%


695,418



13.6

%


765,831



12.6

%

Robert Half Management Resources


167,116



12.8

%


201,097


13.1

%


698,942



13.7

%


792,757



13.1

%

Elimination of intersegment revenues (1)


(92,393)



(7.1)

%


(50,883)



(3.3)

%


(239,996)



(4.7)

%


(172,439)



(2.8)

%

Temporary and consultant staffing


850,438



65.2

%


1,106,325



72.0

%


3,477,335



68.1

%


4,412,125



72.6

%

Permanent placement staffing


91,387



7.0

%


126,394



8.2

%


370,109



7.2

%


533,432



8.8

%

Protiviti


362,261



27.8

%


304,666



19.8

%


1,261,556



24.7

%


1,128,875



18.6

%

Total


$

1,304,086



100.0

%


$

1,537,385



100.0

%


$

5,109,000



100.0

%


$

6,074,432



100.0

%


















GROSS MARGIN:

















Temporary and consultant staffing


$

327,181



38.5

%


$

420,248



38.0

%


$

1,312,797



37.8

%


$

1,677,489



38.0

%

Permanent placement staffing


91,172



99.8

%


126,135



99.8

%


369,401



99.8

%


532,435



99.8

%

Protiviti


95,989



26.5

%


90,478



29.7

%


330,413



26.2

%


315,205



27.9

%

Total


$

514,342



39.4

%


$

636,861



41.4

%


$

2,012,611



39.4

%


$

2,525,129



41.6

%


















SEGMENT INCOME:

















Temporary and consultant staffing


$

71,346



8.4

%


$

97,469



8.8

%


$

237,279



6.8

%


$

410,153



9.3

%

Permanent placement staffing


8,008



8.8

%


15,167



12.0

%


28,799



7.8

%


83,885



15.7

%

Protiviti


50,369



13.9

%


40,592



13.3

%


155,680



12.3

%


127,713



11.3

%

Combined segment income (2)


$

129,723



9.9

%


$

153,228



10.0

%


$

421,758



8.3

%


$

621,751



10.2

%


















SELECTED CASH FLOW

INFORMATION:

















Depreciation


$

15,184





$

15,779





$

62,281





$

64,264




Capital expenditures


$

4,499





$

14,326





$

33,377





$

59,464




Open market repurchases of common stock (shares)


1,074





988





2,506





4,253






















(1) Service revenues for Accountemps, OfficeTeam, Robert Half Technology and Robert Half Management Resources include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each line of business are aggregated and then eliminated as a single line item.


(2) Combined segment income is a non-GAAP measure described further on Page 7.

ROBERT HALF INTERNATIONAL INC.
SUPPLEMENTAL FINANCIAL INFORMATION
(in thousands)

Beginning in Q3 2020 the Company modified its presentation of service revenues for Accountemps, OfficeTeam, Robert Half Technology and Robert Half Management Resources to include intersegment revenues from services provided to Protiviti in connection with the Company's blended business solutions. This is how the Company now measures and manages these divisions internally and, prospectively it is how the Company will report them externally. The combined amount of divisional intersegment revenues with Protiviti are aggregated and then eliminated as a single line item. The Company has prepared the below schedule to provide readers with historical comparative information to better evaluate the related trends.


2018


2019


2020


Q1


Q2


Q3


Q4


Q1


Q2


Q3


Q4


Q1


Q2


Q3


Q4

SERVICE REVENUES:
























Accountemps

$

476,055



$

488,400



$

486,240



$

490,849



$

490,084



$

494,582



$

501,905



$

498,650



$

489,884



$

331,542



$

351,598



$

385,000


OfficeTeam

261,642



268,902



265,758



269,125



252,633



261,952



267,023



259,147



239,979



136,299



173,685



214,985


Robert Half Technology

166,102



178,711



185,687



186,666



182,426



189,461



195,630



198,314



196,652



162,028



161,007



175,730


Robert Half Management Resources

186,690



182,737



181,638



187,745



196,003



195,236



200,421



201,097



211,878



165,031



154,917



167,116


Elimination of intersegment revenues

(24,201)



(30,776)



(35,557)



(41,847)



(36,519)



(38,519)



(46,518)



(50,883)



(46,273)



(41,514)



(59,816)



(92,393)


Temporary and consultant staffing

1,066,288



1,087,974



1,083,766



1,092,538



1,084,627



1,102,712



1,118,461



1,106,325



1,092,120



753,386



781,391



850,438


Permanent placement staffing

121,400



135,038



129,667



125,884



131,562



140,894



134,582



126,394



120,489



71,030



87,203



91,387


Protiviti

207,645



234,042



252,793



263,236



252,341



272,779



299,089



304,666



294,082



283,910



321,303



362,261


Total

$

1,395,333



$

1,457,054



$

1,466,226



$

1,481,658



$

1,468,530



$

1,516,385



$

1,552,132



$

1,537,385



$

1,506,691



$

1,108,326



$

1,189,897



$

1,304,086


ROBERT HALF INTERNATIONAL INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




December 31,



2020


2019



(Unaudited)



SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$

574,426



$

270,478


Accounts receivable, less allowances


$

714,163



$

832,797


Total assets


$

2,557,424



$

2,311,408


Total current liabilities


$

1,046,626



$

940,692


Notes payable, less current portion


$



$

239


Total stockholders' equity


$

1,205,289



$

1,143,683


ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES

The financial results of Robert Half International Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission ("SEC"). To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: as adjusted revenue growth rates; adjusted gross margin; adjusted selling, general and administrative expense; segment income; and combined segment income.

Variations in the Company's financial results include the impact of changes in foreign currency exchange rates, billing days, and certain intercompany adjustments. The Company provides "as adjusted" revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company's lines of business on both a reported basis and also on an as-adjusted basis for global, U.S., and international operations. This information is presented for each of the six most recent quarters. The Company has provided this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days, constant currency exchange rates, and certain intercompany adjustments.

The following measures: adjusted gross margin; adjusted selling, general and administrative expense; and segment income include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results.

Combined segment income is income before income taxes adjusted for interest income and amortization of intangible assets. The Company provides combined segment income because it is how the Company evaluates segment performance.

The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATES (%) (UNAUDITED)




Year-Over-Year Growth Rates

(As Reported)


Non-GAAP Year-Over-Year Growth Rates

(As Adjusted)



2019


2020


2019


2020



Q3


Q4


Q1


Q2


Q3


Q4


Q3


Q4


Q1


Q2


Q3


Q4

Global

























Accountemps


3.2


1.6


0.0


-33.0


-29.9


-22.8


2.7


2.1


-0.7


-32.3


-30.2


-23.1

OfficeTeam


0.5


-3.7


-5.0


-48.0


-35.0


-17.0


0.1


-3.1


-5.7


-47.8


-35.8


-18.2

RH Technology


5.4


6.2


7.8


-14.5


-17.7


-11.4


5.2


7.0


6.8


-14.2


-18.2


-11.9

RH Management Resources


10.3


7.1


8.1


-15.5


-22.7


-16.9


13.9


10.3


7.5


-14.8


-23.5


-18.1

Elimination of intersegment revenues (1)


30.8


21.6


26.7


7.8


28.6


81.6


29.3


21.6


24.9


7.7


28.2


81.5

Temporary and consultant staffing


3.2


1.3


0.7


-31.7


-30.1


-23.1


3.4


2.2


0.0


-31.2


-30.7


-23.8

Permanent placement staffing


3.8


0.4


-8.4


-49.6


-35.2


-27.7


3.4


0.9


-9.0


-49.1


-35.7


-28.5

Total staffing


3.3


1.2


-0.3


-33.7


-30.7


-23.6


3.4


2.1


-1.0


-33.2


-31.2


-24.3

Protiviti


18.3


15.7


16.5


4.1


7.4


18.9


14.6


14.1


15.5


4.5


6.4


17.9

Total


5.9


3.8


2.6


-26.9


-23.3


-15.2


5.4


4.3


1.9


-26.4


-23.9


-15.9


























United States

























Temporary and consultant staffing


5.7


3.0


2.0


-31.7


-31.0


-24.1


4.5


3.2


0.5


-31.7


-31.3


-23.9

Permanent placement staffing


6.5


3.0


-4.9


-51.6


-37.1


-31.3


5.3


3.2


-6.3


-51.6


-37.3


-31.0

Total staffing


5.8


3.0


1.3


-33.7


-31.6


-24.8


4.5


3.2


-0.2


-33.7


-31.9


-24.6

Protiviti


17.5


17.3


21.3


6.4


10.8


22.9


16.2


17.5


19.5


6.3


10.3


23.3

Total


7.9


5.6


4.7


-26.5


-23.3


-15.3


6.6


5.7


3.2


-26.5


-23.7


-15.0


























International

























Temporary and consultant staffing


-5.0


-4.8


-3.8


-31.8


-27.0


-19.3


-0.2


-1.0


-1.9


-28.9


-28.4


-23.5

Permanent placement staffing


-2.1


-5.3


-15.9


-45.0


-30.9


-19.3


-0.6


-4.1


-14.6


-43.2


-31.7


-23.0

Total staffing


-4.6


-4.8


-5.6


-33.8


-27.6


-19.3


-0.3


-1.5


-3.7


-31.1


-28.9


-23.4

Protiviti


21.2


10.4


1.3


-3.9


-5.0


4.3


9.3


3.3


2.4


-1.5


-8.0


-1.7

Total


-0.7


-2.2


-4.4


-28.4


-23.4


-14.7


1.4


-0.6


-2.7


-25.7


-25.0


-19.2


(1) Service revenues for Accountemps, OfficeTeam, Robert Half Technology and Robert Half Management Resources include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each line of business are aggregated and then eliminated as a single line item.

The non-GAAP financial measures included in the table above adjust for the following items:

Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. In order to calculate "Constant Currency" revenue growth rates, as reported amounts are retranslated using foreign exchange rates from the prior year's comparable period.

Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all lines of business. In order to remove the fluctuations caused by comparable periods having different billing days, the company calculates "same billing day" revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period to arrive at a "per billing day" amount. The "same billing day" growth rates are then calculated based upon the "per billing day" amounts.

Intercompany Adjustments. The "As Reported" revenue growth rates are based upon reported revenues. In order to remove the fluctuations caused by the impact of certain intercompany adjustments, applicable comparative period revenues are reclassified to conform with the current period presentation.

The term "As Adjusted" means that the impact of different billing days, constant currency fluctuations, and certain intercompany adjustments are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein on Pages 9-11.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED)


Year-Over-Year Revenue Growth – GLOBAL



Q3 2019


Q4 2019


Q1 2020


Q2 2020


Q3 2020


Q4 2020

Accountemps













As Reported


3.2



1.6



0.0



-33.0



-29.9



-22.8


Billing Days Impact


-1.3



0.0



-1.5



-0.1



-0.3



-0.1


Currency Impact


0.8



0.5



0.8



0.8



0.0



-0.2


As Adjusted


2.7



2.1



-0.7



-32.3



-30.2



-23.1


OfficeTeam













As Reported


0.5



-3.7



-5.0



-48.0



-35.0



-17.0


Billing Days Impact


-1.3



0.0



-1.3



-0.1



-0.2



-0.1


Currency Impact


0.9



0.6



0.6



0.3



-0.6



-1.1


As Adjusted


0.1



-3.1



-5.7



-47.8



-35.8



-18.2


Robert Half Technology













As Reported


5.4



6.2



7.8



-14.5



-17.7



-11.4


Billing Days Impact


-1.4



0.1



-1.5



-0.1



-0.2



0.0


Currency Impact


0.5



0.3



0.5



0.4



-0.3



-0.5


Intercompany Adjustments


0.7



0.4






As Adjusted


5.2



7.0



6.8



-14.2



-18.2



-11.9


Robert Half Management Resources













As Reported


10.3



7.1



8.1



-15.5



-22.7



-16.9


Billing Days Impact


-1.4



0.0



-1.5



-0.1



-0.2



0.0


Currency Impact


1.1



0.7



0.9



0.8



-0.6



-1.2


Intercompany Adjustments


3.9



2.5






As Adjusted


13.9



10.3



7.5



-14.8



-23.5



-18.1


Elimination of intersegment revenues













As Reported


30.8



21.6



26.7



7.8



28.6



81.6


Billing Days Impact


-1.6



0.0



-1.8



-0.2



-0.4



-0.1


Currency Impact


0.1



0.0



0.0



0.1



0.0



0.0


As Adjusted


29.3



21.6



24.9



7.7



28.2



81.5


Temporary and consultant staffing













As Reported


3.2



1.3



0.7



-31.7



-30.1



-23.1


Billing Days Impact


-1.3



0.0



-1.4



-0.1



-0.3



0.0


Currency Impact


0.9



0.5



0.7



0.6



-0.3



-0.7


Intercompany Adjustments


0.6



0.4






As Adjusted


3.4



2.2



0.0



-31.2



-30.7



-23.8


Permanent placement staffing













As Reported


3.8



0.4



-8.4



-49.6



-35.2



-27.7


Billing Days Impact


-1.4



0.0



-1.4



-0.1



-0.2



0.0


Currency Impact


1.0



0.5



0.8



0.6



-0.3



-0.8


As Adjusted


3.4



0.9



-9.0



-49.1



-35.7



-28.5


Total staffing













As Reported


3.3



1.2



-0.3



-33.7



-30.7



-23.6


Billing Days Impact


-1.4



0.0



-1.4



-0.1



-0.2



0.0


Currency Impact


0.9



0.5



0.7



0.6



-0.3



-0.7


Intercompany Adjustments


0.6



0.4






As Adjusted


3.4



2.1



-1.0



-33.2



-31.2



-24.3


Protiviti













As Reported


18.3



15.7



16.5



4.1



7.4



18.9


Billing Days Impact


-1.4



0.1



-1.6



-0.1



-0.3



0.0


Currency Impact


0.8



0.3



0.6



0.5



-0.7



-1.0


Intercompany Adjustments


-3.1



-2.0






As Adjusted


14.6



14.1



15.5



4.5



6.4



17.9


Total













As Reported


5.9



3.8



2.6



-26.9



-23.3



-15.2


Billing Days Impact


-1.4



0.0



-1.4



-0.1



-0.2



0.0


Currency Impact


0.9



0.5



0.7



0.6



-0.4



-0.7


As Adjusted


5.4



4.3



1.9



-26.4



-23.9



-15.9


ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED)


Year-Over-Year Revenue Growth – UNITED STATES



Q3 2019


Q4 2019


Q1 2020


Q2 2020


Q3 2020


Q4 2020

Temporary and consultant staffing





As Reported


5.7



3.0



2.0



-31.7



-31.0



-24.1


Billing Days Impact


-1.2



0.2



-1.5



0.0



-0.3



0.2


Currency Impact







As Adjusted


4.5



3.2



0.5



-31.7



-31.3



-23.9















Permanent placement staffing













As Reported


6.5



3.0



-4.9



-51.6



-37.1



-31.3


Billing Days Impact


-1.2



0.2



-1.4



0.0



-0.2



0.3


Currency Impact







As Adjusted


5.3



3.2



-6.3



-51.6



-37.3



-31.0















Total staffing













As Reported


5.8



3.0



1.3



-33.7



-31.6



-24.8


Billing Days Impact


-1.3



0.2



-1.5



0.0



-0.3



0.2


Currency Impact







As Adjusted


4.5



3.2



-0.2



-33.7



-31.9



-24.6















Protiviti













As Reported


17.5



17.3



21.3



6.4



10.8



22.9


Billing Days Impact


-1.3



0.2



-1.8



-0.1



-0.5



0.4


Currency Impact







As Adjusted


16.2



17.5



19.5



6.3



10.3



23.3















Total













As Reported


7.9



5.6



4.7



-26.5



-23.3



-15.3


Billing Days Impact


-1.3



0.1



-1.5



0.0



-0.4



0.3


Currency Impact







As Adjusted


6.6



5.7



3.2



-26.5



-23.7



-15.0


ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED)


Year-Over-Year Revenue Growth – INTERNATIONAL



Q3 2019


Q4 2019


Q1 2020


Q2 2020


Q3 2020


Q4 2020

Temporary and consultant staffing





As Reported


-5.0



-4.8



-3.8



-31.8



-27.0



-19.3


Billing Days Impact


-1.6



-0.4



-1.4



0.0



0.0



-1.0


Currency Impact


3.8



2.4



3.3



2.9



-1.4



-3.2


Intercompany Adjustments


2.6



1.8






As Adjusted


-0.2



-1.0



-1.9



-28.9



-28.4



-23.5















Permanent placement staffing













As Reported


-2.1



-5.3



-15.9



-45.0



-30.9



-19.3


Billing Days Impact


-1.5



-0.4



-1.1



-0.1



0.0



-1.0


Currency Impact


3.0



1.6



2.4



1.9



-0.8



-2.7


As Adjusted


-0.6



-4.1



-14.6



-43.2



-31.7



-23.0















Total staffing













As Reported


-4.6



-4.8



-5.6



-33.8



-27.6



-19.3


Billing Days Impact


-1.6



-0.6



-1.3



-0.1



0.0



-1.0


Currency Impact


3.7



2.3



3.2



2.8



-1.3



-3.1


Intercompany Adjustments


2.2



1.6






As Adjusted


-0.3



-1.5



-3.7



-31.1



-28.9



-23.4















Protiviti













As Reported


21.2



10.4



1.3



-3.9



-5.0



4.3


Billing Days Impact


-1.8



-0.6



-1.4



0.0



0.1



-1.4


Currency Impact


3.5



1.4



2.5



2.4



-3.1



-4.6


Intercompany Adjustments


-13.6



-7.9






As Adjusted


9.3



3.3



2.4



-1.5



-8.0



-1.7















Total













As Reported


-0.7



-2.2



-4.4



-28.4



-23.4



-14.7


Billing Days Impact


-1.6



-0.5



-1.3



0.0



0.1



-1.1


Currency Impact


3.7



2.1



3.0



2.7



-1.7



-3.4


As Adjusted


1.4



-0.6



-2.7



-25.7



-25.0



-19.2


ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)

(in thousands)



Quarter Ended December 31,


Relationships


2020


2019


2020


2019


2020


2019


Reported


Adjustments


Adjusted (1)


Reported


Adjustments


Adjusted (1)


Reported


Adjusted

SERVICE REVENUES:




















Temporary and consultant staffing

850,438





850,438



1,106,325





1,106,325



65.2

%


72.0

%


65.2

%


72.0

%

Permanent placement staffing

91,387





91,387



126,394





126,394



7.0

%


8.2

%


7.0

%


8.2

%

Protiviti

362,261





362,261



304,666





304,666



27.8

%


19.8

%


27.8

%


19.8

%

Total

$

1,304,086





$

1,304,086



$

1,537,385





$

1,537,385



100.0

%


100.0

%


100.0

%


100.0

%





















GROSS MARGIN:




















Temporary and consultant staffing

$

327,181





$

327,181



$

420,248





$

420,248



38.5

%


38.0

%


38.5

%


38.0

%

Permanent placement staffing

91,172





91,172



126,135





126,135



99.8

%


99.8

%


99.8

%


99.8

%

Protiviti

95,989



5,419



101,408



90,478



2,083



92,561



26.5

%


29.7

%


28.0

%


30.4

%

Total

$

514,342



$

5,419



$

519,761



$

636,861



$

2,083



$

638,944



39.4

%


41.4

%


39.9

%


41.6

%





















SELLING GENERAL AND ADMINISTRATIVE EXPENSE:




















Temporary and consultant staffing

$

287,550



$

(31,715)



$

255,835



$

339,118



$

(16,339)



$

322,779



33.8

%


30.7

%


30.1

%


29.2

%

Permanent placement staffing

86,572



(3,408)



83,164



112,835



(1,867)



110,968



94.7

%


89.3

%


91.0

%


87.8

%

Protiviti

51,039





51,039



51,969





51,969



14.1

%


17.1

%


14.1

%


17.1

%

Total

$

425,161



$

(35,123)



$

390,038



$

503,922



$

(18,206)



$

485,716



32.6

%


32.8

%


29.9

%


31.6

%





















OPERATING/SEGMENT INCOME:




















Temporary and consultant staffing

$

39,631



$

31,715



$

71,346



$

81,130



$

16,339



$

97,469



4.7

%


7.3

%


8.4

%


8.8

%

Permanent placement staffing

4,600



3,408



8,008



13,300



1,867



15,167



5.0

%


10.5

%


8.8

%


12.0

%

Protiviti

44,950



5,419



50,369



38,509



2,083



40,592



12.4

%


12.6

%


13.9

%


13.3

%

Total

$

89,181



$

40,542



$

129,723



$

132,939



$

20,289



$

153,228



6.8

%


8.6

%


9.9

%


10.0

%

Amortization of intangible assets

217





217



339





339



0.0

%


0.0

%


0.0

%


0.0

%

Income from investments held in

employee deferred compensation trusts

(40,542)



40,542





(20,289)



20,289





3.1

%


1.3

%


0.0

%


0.0

%

Interest income, net

(79)





(79)



(1,357)





(1,357)



0.0

%


0.1

%


0.0

%


0.0

%

Income before income taxes

$

129,585



$



$

129,585



$

154,246



$



$

154,246



9.9

%


10.0

%


9.9

%


10.0

%


(1) Changes in the Company's deferred compensation obligations are included in selling, general and administrative expense or, in the case of Protiviti, direct cost, while investment income is presented separately. The non-GAAP financial measures shown in the table above are adjusted to reclassify investment income from investments held in employee deferred compensation trusts to the same line item which includes the corresponding change in obligation. These adjustments have no impact to income before income taxes.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)

(in thousands)



Year Ended December 31,


Relationships


2020


2019


2020


2019


2020


2019


Reported


Adjustments


Adjusted (1)


Reported


Adjustments


Adjusted (1)


Reported


Adjusted

SERVICE REVENUES:




















Temporary and consultant staffing

3,477,335





3,477,335



4,412,125





4,412,125



68.1

%


72.6

%


68.1

%


72.6

%

Permanent placement staffing

370,109





370,109



533,432





533,432



7.2

%


8.8

%


7.2

%


8.8

%

Protiviti

1,261,556





1,261,556



1,128,875





1,128,875



24.7

%


18.6

%


24.7

%


18.6

%

Total

$

5,109,000





$

5,109,000



$

6,074,432





$

6,074,432



100.0

%


100.0

%


100.0

%


100.0

%





















GROSS MARGIN:




















Temporary and consultant staffing

$

1,312,797





$

1,312,797



$

1,677,489





$

1,677,489



37.8

%


38.0

%


37.8

%


38.0

%

Permanent placement staffing

369,401





369,401



532,435





532,435



99.8

%


99.8

%


99.8

%


99.8

%

Protiviti

330,413



11,682



342,095



315,205



5,390



320,595



26.2

%


27.9

%


27.1

%


28.4

%

Total

$

2,012,611



$

11,682



$

2,024,293



$

2,525,129



$

5,390



$

2,530,519



39.4

%


41.6

%


39.6

%


41.7

%





















SELLING GENERAL AND ADMINISTRATIVE EXPENSE:




















Temporary and consultant staffing

$

1,132,915



$

(57,397)



$

1,075,518



$

1,311,521



$

(44,185)



$

1,267,336



32.6

%


29.7

%


30.9

%


28.7

%

Permanent placement staffing

346,711



(6,109)



340,602



453,892



(5,342)



448,550



93.7

%


85.1

%


92.0

%


84.1

%

Protiviti

186,415





186,415



192,882





192,882



14.8

%


17.1

%


14.8

%


17.1

%

Total

$

1,666,041



$

(63,506)



$

1,602,535



$

1,958,295



$

(49,527)



$

1,908,768



32.6

%


32.2

%


31.4

%


31.4

%





















OPERATING/SEGMENT INCOME:




















Temporary and consultant staffing

$

179,882



$

57,397



$

237,279



$

365,968



$

44,185



$

410,153



5.2

%


8.3

%


6.8

%


9.3

%

Permanent placement staffing

22,690



6,109



28,799



78,543



5,342



83,885



6.1

%


14.7

%


7.8

%


15.7

%

Protiviti

143,998



11,682



155,680



122,323



5,390



127,713



11.4

%


10.8

%


12.3

%


11.3

%

Total

$

346,570



$

75,188



$

421,758



$

566,834



$

54,917



621,751



6.8

%


9.3

%


8.3

%


10.2

%

Amortization of intangible assets

1,219





1,219



1,361





1,361



0.0

%


0.0

%


0.0

%


0.0

%

Income from investments held in employee deferred compensation trusts

(75,188)



75,188





(54,917)



54,917





1.5

%


0.9

%


0.0

%


0.0

%

Interest income, net

(1,343)





(1,343)



(5,125)





(5,125)



0.0

%


0.1

%


0.0

%


0.1

%

Income before income taxes

$

421,882



$



$

421,882



$

625,515



$



$

625,515



8.3

%


10.3

%


8.3

%


10.3

%


(1) Changes in the Company's deferred compensation obligations are included in selling, general and administrative expense or, in the case of Protiviti, direct cost, while investment income is presented separately. The non-GAAP financial measures shown in the table above are adjusted to reclassify investment income from investments held in employee deferred compensation trusts to the same line item which includes the corresponding change in obligation. These adjustments have no impact to income before income taxes.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

COMBINED SEGMENT INCOME RECONCILIATION (UNAUDITED)

(in thousands)



Quarter Ended

December 31,


Year Ended

December 31,


2020


2019


2020


2019









Income before income taxes

$

129,585



$

154,246



$

421,882



$

625,515


Interest income, net

(79)



(1,357)



(1,343)



(5,125)


Amortization of intangible assets

217



339



1,219



1,361


Combined segment income

$

129,723



$

153,228



$

421,758



$

621,751


Cision
Cision

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SOURCE Robert Half

Cision
Cision

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2021/28/c6247.html