http://www.morningstar.com/earnings/34650724-robert-half-international-inc-rhi-q4-2011.aspx

Robert Half International Inc. RHI
Q4 2011 Earnings Call Transcript

Transcript Call Date 01/26/2012

Operator: 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, Jr - Chairman and CEO: 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'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 discuss the fourth quarter. Global revenues for the fourth quarter were $973 million, up 14% from one 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 in 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 - Vice Chairman, President and CFO: 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 a 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 2011 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.

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