Robert Half(RHI) - 2020 Q1 - Quarterly Report

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][3] - Trading Symbol: RHI, registered on the New York Stock Exchange[4] - Filer Status: Large accelerated filer[4] - Shares Outstanding (as of April 30, 2020): 114,602,242 shares of $.001 par value Common Stock[4] 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 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) 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) 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) 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) 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) 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) Provides detailed explanations of significant accounting policies, new pronouncements, revenue recognition, and other financial disclosures Note A—Summary of Significant Accounting Policies 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] - Revenues are predominantly derived from specialized staffing services[17] - The COVID-19 pandemic introduces significant uncertainty in making judgments and estimates for financial statements, with potential meaningful impacts in future periods[21] 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%