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Robert Half International Inc RHI
Q1 2010 Earnings Call Transcript

Transcript Call Date 04/27/2010

Operator: Welcome to the Robert Half International Conference Call to discuss First Quarter 2010 Financial Results. 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, Jr. - Chairman and CEO: Thank you, and good afternoon. We appreciate your joining us. Before we begin our prepared remarks, I would like to make customary comments on the call to the effect that this call contains predictions, estimates and other forward-looking statements. These statements represent our current judgment of what the future holds. They include words such as forecast, estimate, project, expect, believe, guidance, and similar expressions. While we believe these remarks to be reasonable, 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 the press release issued today, and in our SEC filings. We assume no obligation to update the statements made in this conference call.

Now, let's review the first quarter results.

Revenues for the first quarter were $737 million, down 10% from the first quarter of last year. Income per share for the quarter was $0.05, down 7% from the first quarter of 2009. Cash flow from operations was $15 million during the quarter. Capital expenditures were $8 million. In January, we raised our quarterly cash dividend to $0.13. Our total dividend paid to stockholders was $20 million during the first quarter.

We are beginning to see improvement in the demand for our professional staffing services as a result of better economic conditions in North America and abroad. First quarter revenues for our staffing operations were up 2% on a constant currency basis from the results we reported for the fourth quarter. Our Permanent Placement operations performed particularly well during the quarter growing 9% on a constant currency basis versus the fourth quarter of 2009. We believe this relates directly to the depth and the severity of personal cuts made during the recession. Many businesses have had to hire at the first sign of a pickup in demand as well as immediately replace workers lost due to turnover.

At this point, I'll turn the call over to Keith for a more detailed review of our first quarter financial results.

M. Keith Waddell - Vice Chairman, President and CFO: Thanks Max. Let's start with the company-wide revenues. As Max indicated, reported revenues in the first quarter were $737 million, down 10% from the first quarter of 2009 and essentially flat on a reported basis sequentially. There were 62 billing days in the first quarter, the same as the first quarter of 2009 and the same as last quarter.

Revenues for Accountemps were $289 million in the first quarter. This is down 12% from a year ago and flat sequentially. Accountemps is our largest staffing division accounts for 39% of Company revenues. There are 360 Accountemps locations worldwide.

OfficeTeam had revenues of $141 million in the first quarter. This is down 3% from the first quarter of 2009 and also flat sequentially. OfficeTeam is our administrative staffing division. It represents 19% of Company revenues and has 323 locations worldwide.

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