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

February 17, 2012 | About:
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10qk

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Robert Half International Inc. (RHI) filed Annual Report for the period ended 2011-12-31.

Robert Half International Inc. has a market cap of $4.16 billion; its shares were traded at around $29.17 with a P/E ratio of 28 and P/S ratio of 1.1. 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:

Workers Compensation. Except for states which require participation in state-operated insurance funds, the Company retains the economic burden for the first $0.5 million per occurrence in workers compensation claims. Workers compensation includes ongoing healthcare and indemnity coverage for claims and may be paid over numerous years following the date of injury. Claims in excess of $0.5 million are insured. Workers compensation expense includes the insurance premiums for claims in excess of $0.5 million, claims administration fees charged by the Companys workers compensation administrator, premiums paid to state-operated insurance funds, and an estimate for the Companys liability for Incurred But Not Reported (IBNR) claims and for the ongoing development of existing claims. Total workers compensation expense was $7.9 million, $6.6 million and $5.0 million, representing 0.30%, 0.29% and 0.23% of applicable U.S. revenue for the years ended December 31, 2011, 2010 and 2009, respectively.

Temporary and consultant staffing services revenues were $3.1 billion for the year ended December 31, 2011, up 19% from revenues of $2.6 billion for the year ended December 31, 2010. On a constant-currency basis, temporary and consultant staffing services revenues increased 17% for 2011 compared to 2010. In the United States, 2011 revenues increased 17% compared to 2010. Although unemployment rates in the United States remained high for the year ended December 31, 2011, the Company experienced an increase in demand for its temporary and consulting services during the year. This is consistent with prior post recession periods where we believe clients seek to keep their labor costs as variable as possible. The Companys revenues from foreign operations increased 25% for 2011 compared to 2010. On a constant-currency basis, the Companys revenues from foreign operations increased 18% for 2011 compared to 2010.

Permanent placement revenues were $302 million for the year ended December 31, 2011, up 37% from revenues of $221 million for the year ended December 31, 2010. On a constant-currency basis, permanent placement revenues increased 33% for 2011 compared to 2010. In the United States, 2011 revenues increased 42% compared to 2010. Although unemployment rates in the United States remained high throughout 2011, the Company experienced an increase in demand for its permanent placement services during this period. The Company believes this demand was bolstered by clients who had previously made deep personnel cuts and needed to reinstate a portion of their workforce as business conditions improved. The Companys revenues from foreign operations increased 31% for 2011 compared to 2010. On a constant-currency basis, the Companys revenues from foreign operations increased 25% for 2011 compared to 2010.

Risk consulting and internal audit services revenues were $424 million for the year ended December 31, 2011, up 10% from revenues of $386 million for the year ended December 31, 2010. On a constant-currency basis, risk consulting and internal audit services revenues increased 8% for 2011 compared to 2010. In the United States, 2011 revenues increased 12% compared to 2010. The Companys revenues from foreign operations increased 4% for 2011 compared to 2010. On a constant-currency basis, the Companys revenues from foreign operations decreased 1% for 2011 compared to 2010.

Temporary and consultant staffing services revenues were $2.6 billion for the year ended December 31, 2010, up 4% from revenues of $2.5 billion for the year ended December 31, 2009. On a constant-currency basis, temporary and consultant staffing services revenues increased 3% for 2010 compared to 2009. In the United States, 2010 revenues increased 4% compared to 2009. Although unemployment rates in the United States remained high for the year ended December 31, 2010, the Company experienced an increase in demand for its temporary and consulting services during the year. This is consistent with prior post recession periods where we believe clients seek to keep their labor costs as variable as possible. The Companys revenues from foreign operations increased 4% for 2010 compared to 2009. On a constant-currency basis, the Companys revenues from foreign operations increased 2% for 2010 compared to 2009.

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