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Robert Half revenue up 11%

April 24, 2015

Professional staffing firm Robert Half International Inc. (NYSE: RHI) reported revenue rose 11.2% in the first quarter to $1.21 billion, with growth rates the strongest in its US operations.

(US$ thousands) Q1 2015 Q1 2014 % growth
Net service revenues $1,205,563 $1,084,342 11.2%
Gross margin $494,087 $438,495 12.7%
Gross margin percentage 41.0% 40.4%  
Net income $77,922 $61,551 26.6%

The Menlo Park, Calif.-based staffing provider’s US temporary and consulting staffing revenue rose 14.8% year over year, and US permanent placement revenue increased 15.6%.

Robert Half’s international temporary and consulting staffing operations revenue fell 6.0%; however, it rose 10.6% on a same billing days and constant currency basis. International permanent placement revenue fell 9.8% but rose 4.0% on a same billing days and constant currency basis.

Quote

“Led by Protiviti and Robert Half Technology, all of our divisions contributed to a solid first quarter,” said Chairman and CEO Harold Messmer Jr. “We saw broad-based revenue gains and higher service demand in every line of business. First-quarter revenues from our staffing operations were up 10% from the year-ago first quarter. Protiviti revenues for the quarter were up 22%.”

“Growth rates remained the strongest in our US operations, but currency-adjusted revenues outside the United States grew nicely, too,” Messmer added. “This was Robert Half's 20th straight quarter of double-digit net income and earnings per share percentage growth on a year-over-year basis. Unlevered return on equity was 32%.”

Revenue by segment

(US$ thousands) Q1 2015 Q1 2014 % growth
Accountemps $413,842 $383,024 8.0%
OfficeTeam $231,093 $211,060 9.5%
Robert Half Technology $153,744 $132,305 16.2%
Robert Half Management Resources $144,839 $131,181 10.4%
Robert Half Finance & Accounting $98,413 $92,625 6.2%
Protiviti $163,632 $134,147 22.0%

Revenue growth by geography and temp/perm

  Year-over-year revenue growth rates
2013 2014 2015
Q4 Q1 Q2 Q3 Q4 Q1
Global            
Accountemps -0.4% 1.7% 6.5% 10.1% 9.6% 8.0%
OfficeTeam 3.0% 4.7% 9.1% 14.1% 12.6% 9.5%
Robert Half Technology 14.1% 9.3% 7.8% 11.0% 11.4% 16.2%
Robert Half Management Resources 0.7% 5.6% 12.4% 18.9% 14.1% 10.4%
             
Temporary and consulting staffing 2.7% 4.1% 8.2% 12.5% 11.3% 10.0%
Permanent placement staffing 6.6% 11.1% 13.8% 16.0% 12.8% 6.2%
             
United States            
Temporary and consulting staffing 5.0% 5.9% 9.3% 13.2% 13.8% 14.8%
Permanent placement staffing 11.0% 12.6% 15.8% 21.8% 20.8% 15.6%
             
International            
Temporary and consulting staffing -4.2% -1.2% 4.6% 10.4% 3.1% -6.0%
Permanent placement staffing 0.0% 8.6% 10.6% 6.3% -0.6% -9.8%

Guidance

Robert Half estimated second-quarter revenue of between $1.245 billion to $1.295 billion, up from $1.165 billion in the second quarter of 2014.

Share price and market cap

Shares in Robert Half fell 3.80% in early morning trading today to $2.26. The company had a market cap of $7.73 billion, according to Yahoo!