Robert Half International (RHI)
Q4 2011 Earnings Call
January 26, 2012 5:00 pm ET
Harold M. Messmer - Chairman, Chief Executive Officer and Member of Executive Committee
M. Keith Waddell - Vice Chairman, President and Chief Financial Officer
Sara Gubins - BofA Merrill Lynch, Research Division
Kevin D. McVeigh - Macquarie Research
Mark S. Marcon - Robert W. Baird & Co. Incorporated, Research Division
Tobey Sommer - SunTrust Robinson Humphrey, Inc., Research Division
Jeffrey M. Silber - BMO Capital Markets U.S.
Andrew C. Steinerman - JP Morgan Chase & Co, Research Division
James Samford - Citigroup Inc, Research Division
Timothy McHugh - William Blair & Company L.L.C., Research Division
James J. Janesky - Avondale Partners, LLC, Research Division
Gary E. Bisbee - Barclays Capital, Research Division
Ato Garrett - Deutsche Bank AG, Research Division
Giridhar Krishnan - Crédit Suisse AG, Research Division
Previous Statements by RHI
» Robert Half International's CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Robert Half International's CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Robert Half International's CEO Discusses Q1 2011 Results - Earnings Call Transcript
Hello, and welcome to the Robert Half International Fourth Quarter 2011 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.
Harold M. Messmer
Hello, everyone, and thank you for joining us today.
Before we get started, I would like to remind everyone that some of the comments made on today's 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 have 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 conference call.
Now let's discuss the fourth quarter. Global revenues for the fourth quarter were $973 million, up 14% from 1 year ago. Income per share was $0.30, up 78% from the $0.17 per share reported in the fourth quarter of 2010. Cash flow from operations was $96 million, and capital expenditures were $15 million during the quarter. We paid our stockholders a cash dividend of $0.14 during the quarter at a cost of $20 million. We also repurchased 300,000 RHI shares for a total of $7.5 million. There remain approximately 6.1 million shares under our board approved stock repurchase plan.
Our specialized Staffing divisions and Protiviti reported solid results in the fourth quarter, this does mark the sixth consecutive quarter of double-digit year-over-year revenue growth for the company. Additionally, growth rates and net income and earnings per share have significantly exceeded revenue growth rates during this period. This reflects the ongoing strong demand for skilled talent, particularly in the technology and accounting sectors. Keith Waddell will now provide you with a closer look at our fourth quarter results.
M. Keith Waddell
Thank you, Max. As you noted, fourth-quarter revenues for the company were $973 million, an increase of 14% from a year ago, and a decrease of 1% sequentially, before any adjustment for billing days and currency fluctuations. There were 61 billing days in the fourth quarter, compared to 62 billing days in the fourth quarter 1 year ago and compared to 64 days in the third quarter of 2011. The current quarter has 64 billing days. Volatile currency markets impacted revenue trends during the quarter.
On a sequential basis, fourth quarter 2000 (sic) revenues were reduced by $12 million due to currency fluctuations, whereas fourth quarter 2010 sequential revenues increased $11 million due to currency fluctuations. Also on a year-over-year basis, fourth quarter 2011 revenues were reduced by $1 million due to currency fluctuation, while third quarter 2011 revenues were increased by $22 million due to currency fluctuations.
Using constant currency rates and the same number of billing days, global revenues grew 16% year-over-year in the fourth quarter of 2011 versus 17% in the third quarter of 2011. Sequentially, global revenues grew 6% in the fourth quarter of 2011, versus 4% in the third quarter of 2011. Fourth quarter revenues for Accountemps were $364 million, up 14% from the fourth quarter of 2010, and up 4% sequentially on a same-day basis. Accountemps is our largest staffing division, with 352 offices worldwide. It accounts for 37% of company revenues. OfficeTeam revenues were $196 million in the fourth quarter, up 12% from the fourth quarter 1 year ago and up 5% from the third quarter of 2011 on a same-day basis.
Established in 1991, OfficeTeam is our high-end Administrative Staffing division, that has 360 locations worldwide and represents 20% of company-wide revenues. Fourth quarter revenues for Robert Half Management Resources were $116 million, up 13% from a year ago and up 4% sequentially on a same-day basis. Robert Half Management Resources was introduced in 1997 which places senior-level accounting finance professionals on a project basis. This division has 152 locations worldwide and makes up 12% of company-wide revenues. Fourth quarter revenues for Robert Half Technology were $113 million, up 23% from the fourth quarter of 2010, and up 4% on a sequential same-day basis.
Robert Half Technology was introduced in 1994, which places information technology professionals on a project and full-time basis. This business operates on 115 locations worldwide and accounts for 12% of company-wide revenues.
Fourth quarter revenues for Robert Half Finance & Accounting, our Permanent Placement division, were $75 million, up 26% from the fourth quarter of 2010, and down 1% sequentially on a same-day basis.