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

August 03, 2012 | About:
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Robert Half International Inc. (RHI) filed Quarterly Report for the period ended 2012-06-30.

Robert Half International Inc. has a market cap of $3.87 billion; its shares were traded at around $27.46 with a P/E ratio of 21.3 and P/S ratio of 1. The dividend yield of Robert Half International Inc. stocks is 2.2%. Robert Half International Inc. had an annual average earning growth of 21.2% over the past 10 years.

Highlight of Business Operations:Temporary and consultant staffing services revenues were $829 million for the three months ended June 30, 2012, increasing by 10.2% compared to revenues of $752 million for the three months ended June 30, 2011. On a same day, constant-currency basis, temporary and consultant staffing services revenues increased 12.8% for the second quarter of 2012 compared to the second quarter of 2011. In the U.S., as reported revenues in the second quarter of 2012 increased 16.5% compared to the second quarter of 2011. On a same-day basis, U.S. year-over-year revenues grew 16.9%. The Company’s temporary and consultant staffing services revenues from international operations decreased 5.2% compared to the second quarter of 2011. On a same day, constant-currency basis, the Company’s revenues from international operations increased 2.8% in the second quarter of 2012 compared to the second quarter of 2011.

Permanent placement staffing revenues were $89 million for the three months ended June 30, 2012, increasing by 10.5% compared to revenues of $81 million for the three months ended June 30, 2011. On a same day, constant-currency basis, permanent placement revenues increased 14.7% for the second quarter of 2012 compared to the second quarter of 2011. In the U.S., revenues in the second quarter of 2012 increased 22.0% compared to the second quarter of 2011. On a same-day basis, U.S. year-over-year revenues increased 22.4%. Historically, demand for permanent placement services is even more sensitive to economic and labor market conditions than demand for temporary and consulting staffing services and this is expected to continue. The Company’s permanent placement staffing services revenues from international operations decreased 1.9% compared to the second quarter of 2011. On a same day, constant-currency basis, the Company’s revenues from international operations increased 6.5% in the second quarter of 2012 compared to the second quarter of 2011.

Operating Income. The Company’s total operating income was $72 million, or 7.0% of revenues, for the three months ended June 30, 2012, increasing by 18% from $61 million, or 6.5% of revenues, for the three months ended June 30, 2011. For the Company’s temporary and consultant staffing services division, operating income was $52 million, or 6.2 % of applicable revenues, up from $46 million, or 6.1% of applicable revenues, in the second quarter of 2011. For the Company’s permanent placement staffing division, operating income was $18 million, or 20.6% of applicable revenues, up from an operating income of $14 million, or 17.2% of applicable revenues, in the second quarter of 2011. For the Company’s risk consulting and internal audit services division, operating income was $2 million, or 1.8% of applicable revenues, up from an operating income of $1 million, or 0.9% of applicable revenues, in the second quarter of 2011.

Temporary and consultant staffing services revenues were $1.6 billion for the six months ended June 30, 2012, increasing by 13.1% compared to revenues of $1.5 billion for the six months ended June 30, 2011. On a same day, constant-currency basis, temporary and consultant staffing services revenues increased 14.2% for the first half of 2012 compared to the first half of 2011. In the U.S., revenues in the first half of 2012 increased 18.3%, or 17.9% on a same-day basis, compared to the first half of 2011. For the Company’s international operations, revenues in the first half of 2012 increased 0.4%, or 5.3% on a same-day, constant currency basis, compared to the first half of 2011.

Operating Income. The Company’s total operating income was $152 million, or 7.4% of revenues, for the six months ended June 30, 2012, increasing by 44% from $105 million, or 5.8% of revenues, for the six months ended June 30, 2011. For the Company’s temporary and consultant staffing services division, operating income was $121 million, or 7.3% of applicable revenues, up from $84 million, or 5.7% of applicable revenues, in the first half of 2011. For the Company’s permanent placement staffing division, operating income was $31 million, or 18.4% of applicable revenues, up from operating income of $22 million, or 14.7% of applicable revenues, in the first half of 2011. For the Company’s risk consulting and internal audit services division, operating loss was $0.3 million, or negative 0.2% of applicable revenues, improving from an operating loss of $1 million, or negative 0.3% of applicable revenues, in the first half of 2011.

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