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Robert Half International Inc. Reports Operating Results (10-Q)

August 02, 2010 | About:
10qk

10qk

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Robert Half International Inc. (RHI) filed Quarterly Report for the period ended 2010-06-30.

Robert Half International Inc. has a market cap of $3.78 billion; its shares were traded at around $25.18 with a P/E ratio of 89.93 and P/S ratio of 1.24. The dividend yield of Robert Half International Inc. stocks is 2.07%. Robert Half International Inc. had an annual average earning growth of 18% over the past 10 years.RHI is in the portfolios of Ron Baron of Baron Funds, Chuck Royce of Royce& Associates, RS Investment Management, Jim Simons of Renaissance Technologies LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc.

Highlight of Business Operations:

The Companys reporting units are Accountemps, Robert Half Finance & Accounting, OfficeTeam, Robert Half Technology, Robert Half Management Resources and Protiviti, which had goodwill balances at June 30, 2010, of $127.1 million, $26.5 million, $0.0 million, $7.1 million, $0.0 million and $27.9 million, respectively, totaling $188.6 million. There were no changes to the Companys reporting units or to the allocations of goodwill by reporting unit through June 30, 2010.

For the three months ended June 30, 2010 and 2009, compensation expense related to restricted stock and stock units was $14.9 million and $15.7 million, respectively, of which $3.3 million and $3.3 million was related to grants made in 2010 and 2009, respectively. A one-percentage point deviation in the estimated forfeiture rates would have resulted in a $0.1 million increase or decrease in compensation expense related to restricted stock and stock units for the three months ended June 30, 2010 and $0.2 million increase or decrease in compensation expense related to restricted stock and stock units for the three months ended June 30, 2009. For the six months ended June 30, 2010 and 2009, compensation expense related to restricted stock and stock units was $29.0 million and $30.1 million, respectively, of which $5.4 million and $4.9 million was related to grants made in 2010 and 2009, respectively. A one-percentage point deviation in the estimated forfeiture rates would have resulted in a $0.3 million increase or decrease in compensation expense related to restricted stock and stock units for both the six months ended June 30, 2010 and 2009.

Operating Income. The Companys total operating income was $22 million, or 2.9% of revenues, for the three months ended June 30, 2010, increasing by 122% from $10 million, or 1.3% of revenues, for the three months ended June 30, 2009. For the Companys temporary and consultant staffing services division, operating income was $24 million, or 3.8% of applicable revenues, down from $25 million, or 4.1% of applicable revenues, in the second quarter of 2009. For the Companys permanent placement staffing division, operating income was $5 million, or 9.9% of applicable revenues, up from an operating loss of $2 million, or negative 4.5% of applicable revenues, in the second quarter of 2009. For the Companys risk consulting and internal audit services division, operating loss was $7 million, or negative 7.3% of applicable revenues, down from an operating loss of $13 million, or negative 14.7% of applicable revenues, in the second quarter of 2009.

Operating Income. The Companys total operating income was $35 million, or 2.3% of revenues, for the six months ended June 30, 2010, increasing by 30% from $27 million, or 1.7% of revenues, for the six months ended June 30, 2009. For the Companys temporary and consultant staffing services division, operating income was $40 million, or 3.3% of applicable revenues, down from $65 million, or 5.0% of applicable revenues, in the first half of 2009. For the Companys permanent placement staffing division, operating income was $9 million, or 8.3% of applicable revenues, up from operating loss of $6 million, or negative 6.6% of applicable revenues, in the first half of 2009. For the Companys risk consulting and internal audit services division, operating loss was $14 million, or negative 7.9% of applicable revenues, down from an operating loss of $32 million, or negative 16.8% of applicable revenues, in the first half of 2009.

Cash and cash equivalents were $290 million and $386 million at June 30, 2010 and 2009, respectively. Operating activities provided $51 million during the six months ended June 30, 2010, which was more than offset by $14 million and $104 million of net cash used in investing activities and financing activities, respectively. Operating activities provided $126 million during the six months ended June 30, 2009, partially offset by $25 million and $74 million of net cash used in investing activities and financing activities, respectively.

Financing activitiesCash used in financing activities for the six months ended June 30, 2010, was $104 million. This included repurchases of $72 million in common stock and $38 million in cash dividends to stockholders, offset by proceeds of $5 million from exercises of stock options and $1 million in excess tax benefits from stock-based compensation. Cash used in financing activities for the six months ended June 30, 2009, was $74 million. This included repurchases of $58 million in common stock and $36 million in cash dividends to stockholders, offset by proceeds of $18 million from exercise of stock options and $2 million in excess tax benefits from stock-based compensation.

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