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

May 06, 2011 | About:

10qk

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Robert Half International Inc. (RHI) filed Quarterly Report for the period ended 2011-03-31.

Robert Half International Inc. has a market cap of $4.27 billion; its shares were traded at around $28.97 with a P/E ratio of 50.8 and P/S ratio of 1.4. The dividend yield of Robert Half International Inc. stocks is 1.9%. Robert Half International Inc. had an annual average earning growth of 23% over the past 10 years.

Highlight of Business Operations:

Operating Income. The Companys total operating income was $44 million, or 5.0% of revenues, for the three months ended March 31, 2011, increasing by 256% from $12 million, or 1.7% of revenues, for the three months ended March 31, 2010. For the Companys temporary and consultant staffing services division, operating income was $38 million, or 5.3% of applicable revenues, up from $17 million, or 2.8% of applicable revenues, in the first quarter of 2010. For the Companys permanent placement staffing division, operating income was $8 million, or 11.6% of applicable revenues, up from an operating income of $3 million, or 6.4% of applicable revenues, in the first quarter of 2010. For the Companys risk consulting and internal audit services division, operating loss was $2 million, or negative 1.6% of applicable revenues, up from an operating loss of $8 million, or negative 8.5% of applicable revenues, in the first quarter of 2010.

Cash and cash equivalents were $282 million and $349 million at March 31, 2011 and 2010, respectively. Operating activities provided $19 million during the three months ended March 31, 2011, offset by $16 million and $41 million of net cash used in investing activities and financing activities, respectively. Operating activities provided $15 million during the three months ended March 31, 2010, offset by $8 million and $20 million of net cash used in investing activities and financing activities, respectively.

Operating activitiesNet cash provided by operating activities for the three months ended March 31, 2011, was comprised of net income of $27 million, adjusted for non-cash items of $18 million, and offset by changes in working capital of $26 million. Net cash provided by operating activities for the three months ended March 31, 2010, was composed of net income of $8 million, adjusted for non-cash items of $24 million, and offset by changes in working capital of $17 million.

Investing activitiesCash used in investing activities for the three months ended March 31, 2011, was $16 million. This was comprised of capital expenditures of $15 million and deposits to trusts for employee benefits and retirement plans of $1 million. Cash used in investing activities for the three months ended March 31, 2010, was $8 million. This was primarily composed of capital expenditures of $8 million.

Financing activitiesCash used in financing activities for the three months ended March 31, 2011, was $41 million. This included repurchases of $31 million in common stock and $20 million in cash dividends to stockholders, offset by proceeds of $10 million from exercises of stock options. Cash used in financing activities for the three months ended March 31, 2010, was $20 million. This included repurchases of $4 million in common stock and $19 million in cash dividends to stockholders, offset by proceeds of $3 million from exercises of stock options.

As of March 31, 2011, the Company is authorized to repurchase, from time to time, up to 10.4 million additional shares of the Companys common stock on the open market or in privately negotiated transactions, depending on market conditions. During the three months ended March 31, 2011, the Company repurchased 1.0 million shares of common stock on the open market for a total cost of $30 million. During the three months ended March 31, 2010, the Company did not repurchase any shares of common stock on the open market. Additional stock repurchases were made in connection with employee stock plans, whereby Company shares were tendered by employees for the payment of exercise price and applicable statutory withholding taxes. During the three months ended March 31, 2011 and 2010, such repurchases totaled approximately 45 thousand shares and 143 thousand shares at a cost of $1 million and $4 million, respectively. Repurchases of shares have been funded with cash generated from operations.

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