Robert Half International Inc. (
Q3 2010 Earnings Call
October 20, 2010 05:00 pm ET
Max Messmer - Chairman of the Board & CEO
Keith Waddell - Vice Chairman of the Board, President & CFO
Mark Marcon - R. W. Baird
Andrew Steinerman - JPMorgan
Kelly Flynn - Credit Suisse
Jeffrey Silber - BMO Capital Markets
Tim McHugh - William Blair & Company
Sara Gubins - Bank of America Merrill Lynch
Tobey Sommer - SunTrust
Ashwin Shirvaikar - Citigroup
Paul Ginocchio - Deutsche Bank
Gary Bisbee - Barclays Capital
Kevin McVeigh - Macquarie
John Healy - Northcoast Research
Previous Statements by RHI
» Robert Half International Inc. Q2 2010 Earnings Call Transcript
» Robert Half International Inc. Q1 2010 Earnings Call Transcript
» Robert Half International Q4 2009 Earnings Call Transcript
» Robert Half International Inc. Q3 2009 Earnings Call Transcript
Hello and welcome to the Robert Half International Third Quarter 2010 Conference Call. Our hosts for today's call are Mr. Max Messmer, Chairman and CEO of Robert Half International; and Mr. Keith Waddell, Vice Chairman, President and Chief Financial Officer.
Mr. Messmer, you may begin.
Thank you, and hello, everyone. Thank you for joining the call today. As is our custom, I would like to remind everyone that comments on this call contain predictions, estimates, and other forward-looking statements. These statements represent our current judgment of what the future holds, and include words such as 'forecast,' 'estimate,' 'project,' 'expect,' ' believe,' 'guidance,' and similar expressions. We believe these remarks to be reasonable, but would remind you that they are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. We've described some of these risks and uncertainties in today's press release and in our SEC filings, including our 10-Ks, 10-Qs, and today's 8-K. We assume no obligation to update the statements made on this call.
Now let's review the third quarter. Third quarter revenues were $817 million, up 13% from the third quarter of 2009, and up 6% sequentially from the second quarter. Income per share for the third quarter was $0.14, up 130% from the $0.06 reported in the third quarter of 2009, and up 74% from the $0.08 reported in the second quarter of this year.
Cash flow from operations during the third quarter was $50 million with capital expenditures of $8 million. We paid a cash dividend to shareholders of $0.13 per share during the quarter for a total of $19 million. We also spent $11 million to repurchase 500,000 shares of RHI common stock during the quarter, approximately 2.1 million shares remain available for repurchase under our Board approved stock repurchase plan. We were pleased to see broad-based increases in demand throughout our operations, each of our staffing divisions and Protiviti reported both year-over-year and sequential revenue gains during the third quarter.
I'll turn the call over to Keith for a more detailed look at the third quarter results.
Thank you, Max. I'll start with companywide revenues. As Max indicated, third quarter revenues were $817 million, up 13% from the third quarter of 2009 and up 6% sequentially. The year-over-year and sequential growth rates were 14% and 6% respectively on a constant currency basis. There were 64 billing days in the third quarter, the same as the third quarter of last year. There were 63 billing days last quarter, and the current fourth quarter has 62 billing days.
Accountemps revenues were $313 million in the third quarter, up 9% from this time last year, and up 4% sequentially on a same day basis. Accountemps is our largest staffing division and accounts for 38% of company revenues. There are 355 Accountemps locations worldwide. OfficeTeam had third quarter revenues of $163 million, an increase of 22% from the third quarter of 2009, and an increase of 7% sequentially on a same day basis. OfficeTeam is our hired administrative staffing division, and represents 20% of company revenues. There are 321 OfficeTeam locations worldwide. Third quarter revenues for our Robert Half Management Resources division were $98 million. This is an increase of 9% from a year ago and an increase of 4% sequentially on a same day basis.
Robert Half Management Resources places senior level accounting and finance professionals on a project basis. It has 153 locations worldwide, and makes up 12% of company revenues. Robert Half Technology had third quarter revenues of $87 million, up 17% from the third quarter of 2009, and up 5% from the second quarter of this year on a same day basis. Robert Half Technology places IT professionals on a consulting and full time basis. It operates in 117 locations worldwide, and accounts for 11% of company revenues. Robert Half Finance & Accounting, our perm placement division had third quarter revenues of $57 million. This is a 33% increase from the third quarter of last year, and a 2% increase sequentially. This business was established in 1948 and it operates in 355 locations worldwide. Our perm placement division accounts for 7% of companywide revenues.
International staffing operations had revenues of $204 million during the third quarter, up 11% from the third quarter of 2009, and up 8% sequentially. On a constant currency basis, revenues for international staffing operations were up 15% compared to the third quarter of last year and up 7% sequentially. We have staffing operations in 100 locations in 18 countries outside the US International staffing operations represent 28% of total staffing revenues.
Protiviti revenues were $99 million during the third quarter, up 2% from a year ago, and up 8% from the second quarter of this year on a same day basis. Formed in 2002 Protiviti is a global business consulting and internal audit firm providing risk, advisory and transaction services. It has 60 locations in 16 countries, and accounts for 12% of total RHI revenues. Protiviti’s international operations represent 25% of total Protiviti revenues.