Robert Half(RHI)
Search documents
Robert Half(RHI) - 2020 Q2 - Earnings Call Transcript
2020-07-24 02:45
Financial Data and Key Metrics Changes - Companywide revenues for Q2 2020 were $1.1 billion, down 27% from the same quarter last year on a reported basis, and down 26% on an as-adjusted basis [8][12] - Net income per share in Q2 was $0.41, compared to $0.98 in the same quarter one year ago [9] - Cash flow from operations during the quarter was $301 million, with capital expenditures of $8 million [10] - Companywide operating income was $58 million in Q2, with an operating margin of 5.3% [22] Business Line Data and Key Metrics Changes - Staffing revenues were down 33% year-over-year on an as-adjusted basis, with U.S. staffing revenues at $640 million, down 34% from the prior year [12][13] - Protiviti's global revenues in Q2 were $284 million, with U.S. revenues up 6% year-over-year on an as-adjusted basis [15] - Overall staffing gross margin decreased to 42.5%, down 260 basis points compared to the year-ago second quarter [18] Market Data and Key Metrics Changes - Non-U.S. staffing revenues were $184 million, down 31% year-over-year on an as-adjusted basis [13] - Currency exchange rate movements decreased reported year-over-year staffing revenues by $8 million [14] - The current third quarter has 64.3 billing days, compared to 64.1 billing days in the same quarter last year [14] Company Strategy and Development Direction - The company has shifted its strategic focus to embrace the new operating environment created by the COVID-19 pandemic, emphasizing remote work and virtual client interactions [29][30] - There is an increased demand for talent as companies upgrade their talent pools without regard to physical location [30] - The company aims to fully participate in any economic recovery, supported by cost reductions and a technology-driven team [32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about recent signs of week-on-week sequential growth in staffing operations, despite significant uncertainty [7] - The company anticipates a continuation of low-single-digit sequential growth in staffing revenues for the third quarter [27][46] - Management noted that the labor market is experiencing unprecedented unemployment levels, which has shifted the focus towards remote work and new skill requirements [29][66] Other Important Information - The company implemented actions to reduce its overall cost structure by approximately 30% compared to Q1 2020, achieving a reported savings of 24% in Q2 [9][19] - The company distributed a $0.34 per share cash dividend to shareholders, totaling $38 million [10] Q&A Session Summary Question: Trends in revenue from different verticals and geographic impacts - Management indicated that they are over-indexed in professional services and financial services, while under-indexed in hospitality and retail [37] - Revenue performance in different states showed consistent growth despite varying COVID impacts [38] Question: Long-term impact of virtual talent sourcing on recovery - Management believes that sourcing talent virtually will enhance recovery by allowing access to a larger labor pool and lower-cost areas [40] Question: Assumptions around Protiviti in the third quarter - The guidance assumes low to mid-single-digit growth for Protiviti, driven by technology consulting and regulatory solutions [46] Question: Trends in permanent placement assignments and deal closures - Management reported that video interviewing has become widely accepted, facilitating the closing of permanent deals [53] Question: Demand impact from furloughed workers - Management noted that furloughs are more prevalent in mid-cap and large-cap companies, and many furloughed employees may not return due to health concerns and childcare needs [66] Question: Cash flow trends and payroll tax deferrals - The company reported strong cash flow performance, with $301 million in operating cash flow, and noted the impact of FICA deferrals [71] Question: Sequential trends in temp staffing revenue - Management acknowledged that while there are slight improvements, the overall revenue trends remain cautious due to ongoing uncertainties [106]
Robert Half(RHI) - 2020 Q1 - Quarterly Report
2020-05-04 20:32
Form 10-Q General Information Summarizes Robert Half International Inc.'s Form 10-Q filing details: registrant, trading symbol, filer status, and shares outstanding - Registrant: **ROBERT HALF INTERNATIONAL INC.**, a Delaware corporation[2](index=2&type=chunk)[3](index=3&type=chunk) - Trading Symbol: **RHI**, registered on the New York Stock Exchange[4](index=4&type=chunk) - Filer Status: **Large accelerated filer**[4](index=4&type=chunk) - Shares Outstanding (as of April 30, 2020): **114,602,242 shares** of $.001 par value Common Stock[4](index=4&type=chunk) PART I—FINANCIAL INFORMATION Presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the reporting period [ITEM 1. FINANCIAL STATEMENTS](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents the unaudited condensed consolidated financial statements for Robert Half International Inc., including balance sheets, income statements, cash flows, and detailed accounting notes [Condensed Consolidated Statements of Financial Position (UNAUDITED)](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION%20(UNAUDITED)) Outlines the company's financial position, including assets, liabilities, and equity, for Q1 2020 and year-end 2019 Condensed Consolidated Statements of Financial Position (UNAUDITED) | Metric | March 31, 2020 (in thousands) | December 31, 2019 (in thousands) | Change (2020 vs 2019) | | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $249,914 | $270,478 | -$20,564 | | Accounts receivable, net | $853,529 | $832,797 | +$20,732 | | Total current assets | $1,606,655 | $1,628,849 | -$22,194 | | Total assets | $2,274,852 | $2,311,408 | -$36,556 | | Accrued payroll and benefit costs | $684,729 | $743,602 | -$58,873 | | Total current liabilities | $913,354 | $940,692 | -$27,338 | | Total liabilities | $1,144,927 | $1,167,725 | -$22,798 | | Total stockholders' equity | $1,129,925 | $1,143,683 | -$13,758 | [Condensed Consolidated Statements of Operations (UNAUDITED)](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20(UNAUDITED)) Presents the company's revenues, costs, and net income for the three months ended March 31, 2020, and 2019 Condensed Consolidated Statements of Operations (UNAUDITED) | Metric | Three Months Ended March 31, 2020 (in thousands) | Three Months Ended March 31, 2019 (in thousands) | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Service revenues | $1,506,691 | $1,468,530 | +2.6% | | Costs of services | $895,974 | $860,942 | +4.1% | | Gross margin | $610,717 | $607,588 | +0.5% | | Selling, general and administrative expenses | $479,573 | $461,359 | +3.9% | | Income before income taxes | $131,763 | $147,383 | -10.6% | | Provision for income taxes | $41,848 | $37,585 | +11.3% | | Net income | $89,915 | $109,798 | -18.2% | | Basic Net income per share | $0.79 | $0.94 | -16.0% | | Diluted Net income per share | $0.79 | $0.93 | -15.1% | | Dividends declared per share | $0.34 | $0.31 | +9.7% | [Condensed Consolidated Statements of Comprehensive Income (Loss) (UNAUDITED)](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)%20(UNAUDITED)) Outlines the company's comprehensive income (loss) for Q1 2020 and Q1 2019, including foreign currency translation impacts Condensed Consolidated Statements of Comprehensive Income (Loss) (UNAUDITED) | Metric | Three Months Ended March 31, 2020 (in thousands) | Three Months Ended March 31, 2019 (in thousands) | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net income | $89,915 | $109,798 | -18.2% | | Foreign currency translation adjustments, net of tax | $(13,700) | $(1,897) | -622.2% | | Total comprehensive income (loss) | $76,215 | $107,901 | -29.4% | [Condensed Consolidated Statements of Stockholders' Equity (UNAUDITED)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY%20(UNAUDITED)) Summarizes changes in stockholders' equity from December 31, 2019, to March 31, 2020, including net income, dividends, and stock repurchases Condensed Consolidated Statements of Stockholders' Equity (UNAUDITED) | Metric | Balance at Dec 31, 2019 (in thousands) | Balance at Mar 31, 2020 (in thousands) | Change | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Total stockholders' equity | $1,143,683 | $1,129,925 | -$13,758 | | Net income | N/A | $89,915 | N/A | | Other comprehensive income (loss) | N/A | $(13,700) | N/A | | Dividends declared | N/A | $(39,441) | N/A | | Repurchases of common stock | N/A | $(63,498) | N/A | | Stock-based compensation | N/A | $13,525 | N/A | [Condensed Consolidated Statements of Cash Flows (UNAUDITED)](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20(UNAUDITED)) Presents the company's cash flow activities for the three months ended March 31, 2020, and 2019, detailing operating, investing, and financing flows Condensed Consolidated Statements of Cash Flows (UNAUDITED) | Metric | Three Months Ended March 31, 2020 (in thousands) | Three Months Ended March 31, 2019 (in thousands) | Change (YoY) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash flows provided by operating activities | $124,926 | $127,079 | -1.7% | | Net cash flows used in investing activities | $(28,350) | $(23,080) | +22.8% | | Net cash flows used in financing activities | $(110,497) | $(110,279) | +0.2% | | Effect of exchange rate fluctuations | $(6,643) | $(654) | +915.7% | | Change in cash and cash equivalents | $(20,564) | $(6,934) | +196.6% | | Cash and cash equivalents at end of period | $249,914 | $269,645 | -7.3% | [Notes to Condensed Consolidated Financial Statements (UNAUDITED)](index=7&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) Provides detailed explanations of significant accounting policies, new pronouncements, revenue recognition, and other financial disclosures [Note A—Summary of Significant Accounting Policies](index=7&type=section&id=Note%20A%E2%80%94Summary%20of%20Significant%20Accounting%20Policies) Outlines the company's core business operations and the impact of the COVID-19 pandemic on financial estimates - The Company provides specialized staffing services (Accountemps, Robert Half Finance & Accounting, OfficeTeam, Robert Half Technology, Robert Half Management Resources, Robert Half Legal, The Creative Group) and risk consulting services (Protiviti)[17](index=17&type=chunk) - Revenues are predominantly derived from specialized staffing services[17](index=17&type=chunk) - The COVID-19 pandemic introduces significant uncertainty in making judgments and estimates for financial statements, with potential meaningful impacts in future periods[21](index=21&type=chunk) Advertising Costs and Capitalized Software Development Costs | Metric | Three Months Ended March 31, 2020 (in millions) | Three Months Ended March 31, 2019 (in millions) | | :-------------------- | :-------------------------------- | :-------------------------------- | | Advertising Costs | $14.5 | $12.8 | | Capitalized internal-use software development costs | $13.0 | $5.0 | [Note B—New Accounting Pronouncements](index=8&type=section&id=Note%20B%E2%80%94New%20Accounting%
Robert Half(RHI) - 2020 Q1 - Earnings Call Transcript
2020-04-24 03:06
Robert Half International, Inc. (NYSE:RHI) Q1 2020 Earnings Conference Call April 23, 2020 5:00 PM ET Company Participants Keith Waddell – President and Chief Executive Officer Michael Buckley – Chief Financial Officer Conference Call Participants Mark Marcon – Baird Andrew Steinerman – JPMorgan Jeff Silber – BMO Capital Markets Kevin McVeigh – Credit Suisse Jasper Bibb – SunTrust Gary Bisbee – Bank of America Mario Cortellacci – Jefferies Seth Weber – RBC Capital Markets Ryan Leonard – Barclays David Silve ...
Robert Half(RHI) - 2019 Q4 - Annual Report
2020-02-14 20:38
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 __________________________________________ Commission file number 1-10427 ROBERT HALF INTERNATIONAL INC. (Exact name of registrant as specified in its charter) Delaware 94-1648752 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE A ...
Robert Half(RHI) - 2019 Q4 - Earnings Call Transcript
2020-01-31 04:36
Financial Data and Key Metrics Changes - Company-wide revenues for Q4 2019 were $1.537 billion, a 4% increase from Q4 2018 on both reported and adjusted basis [7][11] - Net income per share for Q4 2019 was $0.98, up from $0.95 in Q4 2018, representing a 4% year-over-year increase [7] - Cash flow from operations was $81 million, with capital expenditures of $14 million in Q4 2019 [7] - Return on invested capital for the company was 40% in Q4 2019 [9] Business Line Data and Key Metrics Changes - Staffing revenues were $1.233 billion in Q4 2019, with US staffing revenues at $962 million (up 3% year-over-year) and non-US staffing revenues at $271 million (down 1% year-over-year) [11] - Protiviti's global revenues in Q4 2019 were $304 million, with US revenues up 17% year-over-year and non-US revenues up 3% [13] - Overall staffing gross margin decreased by 10 basis points to 44.3% compared to Q4 2018 [14] Market Data and Key Metrics Changes - The US unemployment rate held at 3.5% in December 2019, the lowest in 50 years [24] - The Vistage CEO Confidence Index improved from 85 in the prior quarter to 91.5 in Q4 2019, with 63% of CEOs planning to expand their workforce [24] Company Strategy and Development Direction - The company is focused on professional-level engagements in small and middle-market companies, leveraging its brand recognition and technology investments [27] - Protiviti's collaboration with staffing operations is seen as a key differentiator, providing a full spectrum of staffing and consulting solutions [25] - The company is investing in technology to enhance client and candidate experiences, including improvements to its website and mobile app [26][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning, citing strong demand in the US job market and ongoing talent shortages [24][27] - The company anticipates continued strong growth in Protiviti, with expectations of maintaining double-digit growth rates [32] - Management noted that the competitive environment remains challenging, particularly in international markets, but they are optimistic about stabilization in Germany [34][90] Other Important Information - The company repurchased approximately 1 million shares for $59 million during the quarter, with 2.5 million shares remaining under the repurchase plan [8] - The company expects Q1 2020 revenues to be between $1.515 billion and $1.580 billion, with EPS guidance of $0.90 to $0.96 [21] Q&A Session Summary Question: Can you discuss the strong growth in Protiviti and its sustainability? - Management highlighted Protiviti's seven straight quarters of double-digit growth, with a strong pipeline and broad-based strength across various practice areas [32] Question: What is the outlook for international markets? - Management noted positive growth in Germany and Australia, but negative growth in France, the UK, and Canada, with expectations of continued moderation in growth rates [34] Question: How did US temp revenue perform in January? - Management indicated that US temp revenue growth picked up in January due to easier comparisons and a strong reentry point post-holidays [39][40] Question: What is the impact of AB5 on the business? - Management stated that many clients prefer to use employees over independent contractors due to uncertainty surrounding AB5, which could benefit staffing firms [110] Question: What are the expectations for CapEx in 2020? - The company expects CapEx to be in the range of $100 million to $110 million, primarily for technology investments [83]
Robert Half(RHI) - 2019 Q3 - Quarterly Report
2019-11-12 18:02
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to . Commission File Number 1-10427 ROBERT HALF INTERNATIONAL INC. (Exact name of registrant as specified in its charter) | Delaware | 94-1648752 ...
Robert Half(RHI) - 2019 Q3 - Earnings Call Transcript
2019-10-24 02:10
Robert Half International Inc. (NYSE:RHI) Q3 2019 Results Earnings Conference Call October 23, 2019 5:00 PM ET Company Participants Max Messmer - Chairman & Chief Executive Officer Keith Waddell - Vice Chairman, President & Chief Financial Officer Conference Call Participants Mark Marcon - Baird Andrew Steinerman - JP Morgan Jeff Silber - BMO Capital Kevin McVeigh - Credit Suisse Tobey Sommer - SunTrust Gary Bisbee - Bank of America Merrill Lynch Manav Patnaik - Barclays George Tong - Goldman Sachs Operator ...
Robert Half(RHI) - 2019 Q2 - Quarterly Report
2019-08-02 19:12
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to . Commission File Number 1-10427 ROBERT HALF INTERNATIONAL INC. (Exact name of registrant as specified in its charter) | Delaware | 94-1648752 | | ...
Robert Half(RHI) - 2019 Q2 - Earnings Call Transcript
2019-07-23 23:36
Robert Half International Inc. (NYSE:RHI) Q2 2019 Earnings Conference Call July 23, 2019 5:00 PM ET Company Participants Max Messmer - Chairman & Chief Executive Officer Keith Waddell - Vice Chairman, President & Chief Financial Officer Conference Call Participants Mark Marcon - R.W. Baird Michael Cho - JPMorgan Dan Dolev - Nomura Jeff Silber - BMO Capital Markets Kevin McVeigh - Credit Suisse Gary Bisbee - Bank of America Merrill Lynch Timothy McHugh - William Blair Ryan Leonard - Barclays Capital Tobey So ...
Robert Half(RHI) - 2019 Q1 - Quarterly Report
2019-05-06 20:24
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM to . Commission File Number 1-10427 ROBERT HALF INTERNATIONAL INC. (Exact name of registrant as specified in its charter) Delaware 94-1648752 (State ...