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Robert Half Reports Fourth-Quarter And Year-End Financial Results

MENLO PARK, Calif. , Jan. 30, 2020 /CNW/ -- Robert Half International Inc. (RHI) today reported revenues and earnings for the fourth quarter and year ended December 31, 2019.

Robert Half (PRNewsfoto/Robert Half)

For the quarter ended December 31, 2019, net income was $113 million , or $.98 per share, on revenues of $1.537 billion . Net income for the prior year's fourth quarter was $114 million , or $.95 per share, on revenues of $1.482 billion .

For the year ended December 31, 2019, net income was $454 million , or $3.90 per share, on revenues of $6.074 billion . For the year ended December 31, 2018, net income was $434 million , or $3.57 per share, on revenues of $5.800 billion .

"We ended 2019 with continued strength in the U.S. job market and solid demand for our professional staffing and consulting services," said M. Keith Waddell , Chief Executive Officer of Robert Half. "We are particularly pleased with how Protiviti performed during the quarter. Our Robert Half Technology and Robert Half Management Resources divisions also turned in solid results, largely due to ongoing talent shortages in the professional disciplines they serve."

Waddell added, "Return on invested capital for the company was 40 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 March 1 . 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# 5398663. 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 temporary, 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; 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 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. AND SUBSIDIARIES

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)




Quarter
Ended December 31,


Year
Ended December 31,



2019


2018


2019


2018



(Unaudited)


(Unaudited)












Service revenues


$

1,537,385



$

1,481,658



$

6,074,432



$

5,800,271


Costs of services


898,441



861,596



3,543,913



3,390,257











Gross margin


638,944



620,062



2,530,519



2,410,014











Selling, general and administrative expenses


485,716



466,153



1,908,768



1,821,089


Amortization of intangible assets


339



371



1,361



1,705


Interest income, net


(1,357)



(1,445)



(5,125)



(4,382)











Income before income taxes


154,246



154,983



625,515



591,602


Provision for income taxes


41,404



41,419



171,082



157,314











Net income


$

112,842



$

113,564



$

454,433



$

434,288











Diluted net income per share


$

.98



$

.95



$

3.90



$

3.57











Shares:









Basic


114,034



118,736



115,656



120,513


Diluted


114,862



119,851



116,411



121,602


 


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES


SUPPLEMENTAL FINANCIAL INFORMATION


(in thousands)






Quarter Ended December 31,


Year Ended December 31,




2019


2018


2019


2018




(Unaudited)


(Unaudited)





SERVICE REVENUES:


















Accountemps


$

486,249



31.6

%


$

483,487



32.6

%


$

1,946,404



32.0

%


$

1,915,054



33.1

%


OfficeTeam


258,331



16.8

%


268,489



18.1

%


1,037,341



17.1

%


1,063,238



18.3

%


Robert Half Technology


185,964



12.2

%


174,829



11.8

%


722,535



11.9

%


682,889



11.8

%


Robert Half Management Resources


175,781



11.4

%


165,733



11.2

%


705,845



11.6

%


669,385



11.5

%


Robert Half Finance & Accounting


126,394



8.2

%


125,884



8.5

%


533,432



8.8

%


511,989



8.8

%


Protiviti


304,666



19.8

%


263,236



17.8

%


1,128,875



18.6

%


957,716



16.5

%


Total


$

1,537,385



100.0

%


$

1,481,658



100.0

%


$

6,074,432



100.0

%


$

5,800,271



100.0

%



















GROSS MARGIN:


















Temporary and consultant staffing


$

420,248



38.0

%


$

414,920



38.0

%


$

1,677,489



38.0

%


$

1,629,645



37.6

%


Permanent placement staffing


126,135



99.8

%


125,637



99.8

%


532,435



99.8

%


511,046



99.8

%


Risk consulting and internal audit services


92,561



30.4

%


79,505



30.2

%


320,595



28.4

%


269,323



28.1

%


Total


$

638,944



41.6

%


$

620,062



41.8

%


$

2,530,519



41.7

%


$

2,410,014



41.6

%



















OPERATING INCOME:


















Temporary and consultant staffing


$

97,469



8.8

%


$

101,800



9.3

%


$

410,153



9.3

%


$

404,800



9.3

%


Permanent placement staffing


15,167



12.0

%


18,091



14.4

%


83,885



15.7

%


90,801



17.7

%


Risk consulting and internal audit services


40,592



13.3

%


34,018



12.9

%


127,713



11.3

%


93,324



9.7

%


Total


$

153,228



10.0

%


$

153,909



10.4

%


$

621,751



10.2

%


$

588,925



10.2

%



















SELECTED CASH FLOW INFORMATION:


















Depreciation


$

15,779





$

15,900





$

64,264





$

64,244





Capital expenditures


$

14,326





$

15,298





$

59,464





$

42,484





Open market repurchases of common stock (shares)


988





2,359





4,253





5,614




 


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES


SUPPLEMENTAL FINANCIAL INFORMATION


(in thousands)






December 31,




2019


2018




(Unaudited)



SELECTED BALANCE SHEET INFORMATION:






Cash and cash equivalents


$

270,478



$

276,579



Accounts receivable, less allowances


$

832,797



$

794,446



Total assets


$

2,311,408



$

1,903,097



Total current liabilities


$

940,692



$

819,536



Notes payable, less current portion


$

239



$

457



Total stockholders' equity


$

1,143,683



$

1,063,198


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES
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 revenue growth rates derived from non-GAAP revenue amounts.

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 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 actual revenue growth derived from revenue 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. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES







REVENUE GROWTH RATES (%) (UNAUDITED):










Year-Over-Year Growth Rates
(As Reported)


Non-GAAP Year-Over-Year Growth Rates
(As Adjusted)




2018


2019


2018


2019




Q3


Q4


Q1


Q2


Q3


Q4


Q3


Q4


Q1


Q2


Q3


Q4

Global


























Accountemps


8.1


8.4


2.5


1.3


2.1


0.6


8.6


8.7


5.6


2.8


1.6


1.1


OfficeTeam


7.7


4.0


-3.5


-2.7


0.3


-3.8


7.8


4.1


-0.4


-1.2


-0.1


-3.2


RH Technology


12.4


11.4


7.4


4.6


4.9


6.4


12.6


11.4


10.7


6.4


4.8


7.2


RH Management Resources


2.8


4.1


2.1


4.6


9.2


6.1


8.1


9.1


14.3


12.0


12.9


9.4


Temporary and consultant staffing


7.9


7.1


1.7


1.4


3.2


1.3


8.9


8.0


6.2


3.7


3.4


2.2


Permanent placement staffing


16.5


12.8


8.4


4.3


3.8


0.4


17.4


13.5


12.3


6.2


3.4


0.9


Total staffing


8.7


7.6


2.4


1.7


3.3


1.2


9.8


8.5


6.9


4.0


3.4


2.1


Protiviti


21.2


22.8


21.5


16.6


18.3


15.7


17.5


19.2


17.3


13.8


14.6


14.1


Total


10.7


10.1


5.2


4.1


5.9


3.8


11.1


10.3


8.5


5.6


5.4


4.3



























United States




















Temporary and consultant staffing


6.8


7.4


3.4


3.5


5.7


3.0


6.5


6.3


5.1


3.8


4.5


3.2


Permanent placement staffing


17.0


16.4


10.0


6.6


6.5


3.0


16.7


15.3


11.8


6.9


5.3


3.2


Total staffing


7.7


8.1


4.0


3.8


5.8


3.0


7.4


7.1


5.7


4.1


4.5


3.2


Protiviti


17.3


17.6


14.9


14.7


17.5


17.3


17.1


16.4


16.8


15.1


16.2


17.5


Total


9.3


9.7


5.7


5.6


7.9


5.6


9.0


8.7


7.4


6.0


6.6


5.7



























International




















Temporary and consultant staffing


11.6


6.1


-3.7


-5.9


-5.0


-4.8


17.8


14.1


10.2


3.1


-0.2


-1.0


Permanent placement staffing


15.4


5.6


4.9


-0.6


-2.1


-5.3


18.8


10.4


12.8


4.4


-0.6


-4.1


Total staffing


12.1


6.0


-2.5


-5.1


-4.6


-4.8


17.9


13.6


10.5


3.3


-0.3


-1.5


Protiviti


38.3


45.1


48.8


23.2


21.2


10.4


19.5


29.5


18.9


9.4


9.3


3.3


Total


15.5


11.2


3.7


-1.0


-0.7


-2.2


18.2


16.0


11.9


4.4


1.4


-0.6

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 8-10.


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES




REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):




Year-Over-Year Revenue Growth – GLOBAL




Q3 2018


Q4 2018


Q1 2019


Q2 2019


Q3 2019


 Q4 2019

Accountemps












As Reported


8.1



8.4



2.5



1.3



2.1



0.6



Billing Days Impact


-0.3



-0.7



1.4



0.3



-1.3



0.0



Currency Impact


0.8



1.0



1.7



1.2



0.8



0.5



As Adjusted


8.6



8.7



5.6



2.8



1.6



1.1


OfficeTeam




















As Reported


7.7



4.0



-3.5



-2.7



0.3



-3.8



Billing Days Impact


-0.4



-0.7



1.3



0.2



-1.4



0.0



Currency Impact


0.5



0.8



1.8



1.3



1.0



0.6



As Adjusted


7.8



4.1



-0.4



-1.2



-0.1



-3.2


Robert Half Technology




















As Reported


12.4



11.4



7.4



4.6



4.9



6.4



Billing Days Impact


-0.3



-0.9



1.4



0.3



-1.4



0.1



Currency Impact


0.5



0.7



1.2



0.9



0.6



0.3



Intercompany Adjustments




0.2



0.7



0.6



0.7



0.4



As Adjusted


12.6



11.4



10.7



6.4



4.8



7.2


Robert Half Management Resources




















As Reported


2.8



4.1



2.1



4.6



9.2



6.1



Billing Days Impact


-0.4



-0.8



1.5



0.2



-1.5



0.0



Currency Impact


1.0



1.4



2.8



2.0



1.3



0.8



Intercompany Adjustments


4.7



4.4



7.9



5.2



3.9



2.5



As Adjusted


8.1



9.1



14.3



12.0



12.9



9.4


Temporary and consultant staffing




















As Reported


7.9



7.1



1.7



1.4



3.2



1.3



Billing Days Impact


-0.4



-0.8



1.4



0.2



-1.3



0.0



Currency Impact


0.7



1.0



1.8



1.3



0.9



0.5



Intercompany Adjustments


0.7



0.7



1.3



0.8



0.6



0.4



As Adjusted


8.9



8.0



6.2



3.7



3.4



2.2


Permanent placement staffing




















As Reported


16.5



12.8



8.4



4.3



3.8



0.4



Billing Days Impact


-0.4



-0.7



1.4



0.2



-1.4



0.0



Currency Impact


1.3



1.4



2.5



1.7



1.0



0.5



As Adjusted


17.4



13.5



12.3



6.2



3.4



0.9


Total staffing




















As Reported


8.7



7.6



2.4



1.7



3.3



1.2



Billing Days Impact


-0.4



-0.7



1.4



0.3



-1.4



0.0



Currency Impact


0.8



1.0



1.9



1.3



0.9



0.5



Intercompany Adjustments


0.7



0.6



1.2



0.7



0.6



0.4



As Adjusted


9.8



8.5



6.9



4.0



3.4



2.1


Protiviti




















As Reported


21.2



22.8



21.5



16.6



18.3



15.7



Billing Days Impact


-0.4



-0.8



1.5



0.3



-1.4



0.1



Currency Impact


0.6



0.9



1.7



1.2



0.8



0.3



Intercompany Adjustments


-3.9



-3.7



-7.4



-4.3



-3.1



-2.0



As Adjusted


17.5



19.2



17.3



13.8



14.6



14.1


Total




















As Reported


10.7



10.1



5.2



4.1



5.9



3.8



Billing Days Impact


-0.3



-0.8



1.4



0.2



-1.4



0.0



Currency Impact


0.7



1.0



1.9



1.3



0.9



0.5



As Adjusted


11.1



10.3



8.5



5.6



5.4



4.3


 


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES




REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):




Year-Over-Year Revenue Growth – UNITED STATES




Q3 2018


Q4 2018


Q1 2019


Q2 2019


Q3 2019


 Q4 2019

Temporary and consultant staffing




As Reported


6.8



7.4



3.4



3.5



5.7



3.0



Billing Days Impact


-0.3



-1.1



1.7



0.3



-1.2



0.2



Currency Impact














As Adjusted


6.5



6.3



5.1



3.8



4.5



3.2






















Permanent placement staffing




















As Reported


17.0



16.4



10.0



6.6



6.5



3.0



Billing Days Impact


-0.3



-1.1



1.8



0.3



-1.2



0.2



Currency Impact














As Adjusted


16.7



15.3



11.8



6.9



5.3



3.2






















Total staffing




















As Reported


7.7



8.1



4.0



3.8



5.8



3.0



Billing Days Impact


-0.3



-1.0



1.7



0.3



-1.3



0.2



Currency Impact














As Adjusted


7.4



7.1



5.7



4.1



4.5



3.2






















Protiviti




















As Reported


17.3



17.6



14.9



14.7



17.5



17.3



Billing Days Impact


-0.2



-1.2



1.9



0.4



-1.3



0.2



Currency Impact














As Adjusted


17.1



16.4



16.8



15.1



16.2



17.5






















Total




















As Reported


9.3



9.7



5.7



5.6



7.9



5.6



Billing Days Impact


-0.3



-1.0



1.7



0.4



-1.3



0.1



Currency Impact














As Adjusted


9.0



8.7



7.4



6.0



6.6



5.7


 


ROBERT HALF INTERNATIONAL INC. AND SUBSIDIARIES


NON-GAAP FINANCIAL MEASURES




REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):




Year-Over-Year Revenue Growth – INTERNATIONAL




Q3 2018


Q4 2018


Q1 2019


Q2 2019


Q3 2019


 Q4 2019

Temporary and consultant staffing














As Reported


11.6


6.1


-3.7


-5.9


-5.0


-4.8


Billing Days Impact


-0.5


0.4


0.4


-0.2


-1.6


-0.4


Currency Impact


3.2


4.4


8.1


5.7


3.8


2.4


Intercompany Adjustments


3.5


3.2


5.4


3.5


2.6


1.8


As Adjusted


17.8


14.1


10.2


3.1


-0.2


-1.0















Permanent placement staffing














As Reported


15.4


5.6


4.9


-0.6


-2.1


-5.3


Billing Days Impact


-0.6


0.5


0.3


-0.2


-1.5


-0.4


Currency Impact


4.0


4.3


7.6


5.2


3.0


1.6


As Adjusted


18.8


10.4


12.8


4.4


-0.6


-4.1















Total staffing














As Reported


12.1


6.0


-2.5


-5.1


-4.6


-4.8


Billing Days Impact


-0.5


0.5


0.3


-0.2


-1.6


-0.6


Currency Impact


3.3


4.4


8.0


5.6


3.7


2.3


Intercompany Adjustments


3.0


2.7


4.7


3.0


2.2


1.6


As Adjusted


17.9


13.6


10.5


3.3


-0.3


-1.5















Protiviti














As Reported


38.3


45.1


48.8


23.2


21.2


10.4


Billing Days Impact


-0.5


0.6


0.3


-0.1


-1.8


-0.6


Currency Impact


2.7


4.2


7.1


5.0


3.5


1.4


Intercompany Adjustments


-21.0


-20.4


-37.3


-18.7


-13.6


-7.9


As Adjusted


19.5


29.5


18.9


9.4


9.3


3.3















Total














As Reported


15.5


11.2


3.7


-1.0


-0.7


-2.2


Billing Days Impact


-0.6


0.4


0.4


-0.1


-1.6


-0.5


Currency Impact


3.3


4.4


7.8


5.5


3.7


2.1


As Adjusted


18.2


16.0


11.9


4.4


1.4


-0.6

 

Cision

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SOURCE Robert Half


View original content to download multimedia: http://www.newswire.ca/en/releases/archive/January2020/30/c2961.html