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California-based staffing firm Robert Half International (RHI: NYSE) announced that net income in the in Q2 2013 was USD 63.1 million, down by USD 8.1 million compared to the same period last year due to a nonrecurring litigation settlement and the resolution of certain tax matters . Revenue in constant currency for the same period rose by +3% to USD 1.06 billion helped by strong performances in IT staffing and Protiviti, the audit/risk consulting business.
Gross margins improved slightly from 40.4% to 40.6%
Operating income from temporary and consultant staffing increased strongly by +48% to USD 76.6 million while permanent staffing operating income declined by -16% to USD 15.5 million.
Harold M. Messmer, Jr., chairman and CEO of Robert Half International, said: "Robert Half saw continued demand for our professional services during the quarter, and we were pleased with the company's overall performance. Revenue growth was concentrated in the United States, which has been the case for the past several quarters. Within our staffing lines of business, our Robert Half Technology division reported the most sizable revenue gains. Protiviti also had another excellent quarter, with revenues reaching their highest level since the fourth quarter of 2007."
The company’s international division which comprises approximately 25% of total revenue saw revenue declines of -6% in temporary and contract staffing and -11% in permanent placement resulting in a total decline of -7%. 16% of the company’s international revenue is derived from Europe (with Germany, UK and Belgium being the largest markets) while 4% is derived from Asia with the remainder coming from Canada. Robert Half has 400 offices in 21 countries.
Mr Messmer added: “Despite the on-going softness in international markets, this is the 13th consecutive quarter in which net income and earnings per share have grown +15% or more on a year-over-year basis.”
Looking ahead, the company suggested that revenues are poised for “gradual reacceleration”.
The company’s share closed at USD 35.84, down -0.05% on the day but an increase of +33.83% compared with a year ago. Based on its current share price, the company has a market value of USD 5.001 billion.