Robert Half International Inc RHI
Q3 2011 Earnings Call Transcript

Transcript Call Date 10/25/2011

Operator: Hello and welcome to the Robert Half International Third 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, Jr. - Chairman and CEO: Hello everyone and thank you for joining us on the call today.

Before we review our third quarter results, I would like to remind you that comments made 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 8-K. We assume no obligation to update the statements made on this conference call.

Now, let's discuss the third quarter. Company-wide revenues were $985 million, a 20% increase from the third quarter of 2010. Income per share was $0.31, up 121% from last year's third quarter amount of $0.14 per share. Cash flow from operations in the third quarter was $72 million. Capital expenditures were $13 million. We paid our stockholders a cash dividend of $0.14 per share during the quarter at a cost of $20 million.

We also repurchased 2.1 million RHI shares during the third quarter at a total cost of $48 million. Approximately 6.4 million shares remain available under our Board approved stock repurchase plan. We saw a broad-based demand for our professional services throughout the third quarter resulting in double-digit year-over-year revenue growth rates for the 5th consecutive quarter.

All of our divisions performed well, led by our technology staffing division. In addition, we were particularly pleased with the continuing expansion of our gross margins across our temporary staffing divisions.

Keith Waddell will now provide you with a closer look at our third quarter financial results.

M. Keith Waddell - Vice Chairman, President and CFO: Thank you Max. As you noted, third quarter revenues for the Company were $985 million, an increase of 20% from a year ago and an increase of 4% sequentially on a same day basis. There were 64 billing days in the third quarter, the same as last year's third quarter and up one day sequentially. The current quarter has 61 billing days.

Accountemps had third quarter revenues of $367 million, up 17% from a year ago and up 5% sequentially on a same day basis. Accountemps is our largest staffing division and has 352 offices worldwide. It accounts for 37% of Company revenues.

Third quarter revenues for OfficeTeam were $196 million, up 20% from the third quarter of last year and up 3% from the second quarter of this year on a same day basis. Established in 1991 OfficeTeam is our high end administrative staffing division. It has 315 locations worldwide and represents 20% of Company-wide revenues.

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