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

November 05, 2010 | About:

10qk

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Robert Half International Inc. (RHI) filed Quarterly Report for the period ended 2010-09-30.

Robert Half International Inc. has a market cap of $4.17 billion; its shares were traded at around $28.34 with a P/E ratio of 78.6 and P/S ratio of 1.3. The dividend yield of Robert Half International Inc. stocks is 1.9%. 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, Steven Cohen of SAC Capital Advisors, 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 September 30, 2010, of $127.4 million, $26.6 million, $0.0 million, $7.2 million, $0.0 million and $28.1 million, respectively, totaling $189.3 million. There were no changes to the Companys reporting units or to the allocations of goodwill by reporting unit through September 30, 2010.

For the three months ended September 30, 2010 and 2009, compensation expense related to restricted stock and stock units was $14.0 million and $15.1 million, respectively, of which $3.4 million and $3.5 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 and a $0.2 million increase or decrease in compensation expense related to restricted stock and stock units for the three months ended September 30, 2010 and September 30, 2009, respectively. For the nine months ended September 30, 2010 and 2009, compensation expense related to restricted stock and stock units was $43.0 million and $45.2 million, respectively, of which $8.8 million and $8.4 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 $0.4 million increase or decrease in compensation expense related to restricted stock and stock units for the nine months ended September 30, 2010. A one-percentage point deviation in the estimated forfeiture rates would have resulted in a $0.5 million increase or decrease in compensation expense related to restricted stock and stock units for the nine months ended September 30, 2009.

Operating Income. The Companys total operating income was $37 million, or 4.5% of revenues, for the three months ended September 30, 2010, increasing by 112% from $17 million, or 2.4% of revenues, for the three months ended September 30, 2009. For the Companys temporary and consultant staffing services division, operating income was $32 million, or 4.8% of applicable revenues, up from $17 million, or 2.9% of applicable revenues, in the third quarter of 2009. For the Companys permanent placement staffing division, operating income in the third quarter of 2010 was $5 million, or 8.9% of applicable revenues, up from an operating loss of $1 million, or negative 1.8% of applicable revenues, in the third quarter of 2009. For the Companys risk consulting and internal audit services division, operating income in the third quarter of 2010 was $0.1 million, or 0.1% of applicable revenues, down from an operating income of $1 million, or 1.1% of applicable revenues, in the third quarter of 2009.

Cash and cash equivalents were $311 million and $408 million at September 30, 2010 and 2009, respectively. Operating activities provided $101 million during the nine months ended September 30, 2010, which was more than offset by $23 million and $134 million of net cash used in investing activities and financing activities, respectively. Operating activities provided $192 million during the nine months ended September 30, 2009, partially offset by $34 million and $117 million of net cash used in investing activities and financing activities, respectively.

Investing activitiesCash used in investing activities for the nine months ended September 30, 2010, was $23 million. This was primarily comprised of capital expenditures of $22 million and deposits to trusts for employee benefits and retirement plans of $1 million. Cash used in investing activities for the nine months ended September 30, 2009, was $34 million. This was primarily composed of capital expenditures of $31 million and deposits to trusts for employee benefits and retirement plans of $3 million.

Financing activitiesCash used in financing activities for the nine months ended September 30, 2010, was $134 million. This included repurchases of $83 million in common stock and $58 million in cash dividends to stockholders, offset by proceeds of $6 million from exercises of stock options and $1 million in excess tax benefits from stock-based compensation. Cash used in financing activities for the nine months ended September 30, 2009, was $117 million. This included repurchases of $87 million in common stock and

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