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

May 07, 2010 | About:
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10qk

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Robert Half International Inc. (RHI) filed Quarterly Report for the period ended 2010-03-31.

Robert Half International Inc. has a market cap of $3.96 billion; its shares were traded at around $26.39 with a P/E ratio of 114.7 and P/S ratio of 1.4. The dividend yield of Robert Half International Inc. stocks is 2%. 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, Paul Tudor Jones of The Tudor Group, RS Investment Management, Jim Simons of Renaissance Technologies LLC, Ruane Cunniff of Ruane & Cunniff & Goldfarb Inc, Jeremy Grantham of GMO LLC.

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 March 31, 2010, of $127.3 million, $26.6 million, $0.0 million, $7.2 million, $0.0 million and $28.2 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 March 31, 2010.

For the three months ended March 31, 2010 and 2009, compensation expense related to restricted stock and stock units was $14.1 million and $14.4 million, respectively, of which $2.1 million and $1.5 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 increase or decrease in compensation expense related to restricted stock and stock units for both the three months ended March 31, 2010 and 2009.

Operating Income. The Companys total operating income was $12 million, or 1.7% of revenues, for the three months ended March 31, 2010, decreasing by 25% from $17 million, or 2.0% of revenues, for the three months ended March 31, 2009. For the Companys temporary and consultant staffing services division, operating income was $17 million, or 2.8% of applicable revenues, down from $40 million, or 5.9% of applicable revenues, in the first quarter of 2009. For the Companys permanent placement staffing division, operating income was $3 million, or 6.4% of applicable revenues, up from an operating loss of $4 million, or negative 8.5% of applicable revenues, in the first quarter of 2009. For the Companys risk consulting and internal audit services division, operating loss was $8 million, or negative 8.5% of applicable revenues, down from an operating loss of $19 million, or negative 18.8% of applicable revenues, in the first quarter of 2009.

Cash and cash equivalents were $349 million and $359 million at March 31, 2010 and 2009, respectively. Operating activities provided $15 million during the three months ended March 31, 2010, which was more than offset by $8 million and $20 million of net cash used in investing activities and financing activities, respectively. Operating activities provided $48 million during the three months ended March 31, 2009, partially offset by $13 million and $26 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, 2010, was comprised of net income of $8 million, adjusted for non-cash items of $24 million, and offset by changes in working capital of $17 million. Net cash provided by operating activities for the three months ended March 31, 2009, was composed of net income of $9 million, adjusted for non-cash items of $33 million, and net cash provided by changes in working capital of $6 million.

Financing activitiesCash 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. Cash used in financing activities for the three months ended March 31, 2009, was $26 million. This was primarily driven by repurchases of $8 million in common stock and $18 million in cash dividends to stockholders.

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