Robert Half International reports net income of over $60m in Q1
"We saw strong demand in all areas of the business, especially in the latter part of the quarter. Growth was strongest in our Protiviti, technology staffing and permanent placement divisions. Non-U.S. operations also improved, particularly permanent placement services, which reported solid sequential and year-over-year revenue gains during the quarter."
Messmer added: "This was Robert Half's 16th consecutive quarter of double-digit net income and earnings-per-share growth on a year-over-year basis. Unlevered return on equity was 27 percent for the quarter."
M. KEITH WADDELL, VICE CHAIRMAN, PRESIDENT AND CFO, ROBERT HALF:
Global revenues were $1.08 billion in the first quarter. This is up 6 percent from the first quarter one year ago on both a reported and same-day, constant-currency basis.
Global staffing revenues were up 5 percent on a same-day, constant-currency basis. U.S. staffing revenues were $720 million in the first quarter, up 6 percent on a same-day basis. International staffing revenues were $230 million in the first quarter, up 1 percent on a same-day, constant-currency basis.
We have 342 staffing locations worldwide, including 99 locations in 18 countries outside the United States. We had 62.4 billing days in the first quarter, compared to 62.2 days in the first quarter of 2013. This had the effect of increasing reported year-over-year staffing growth rates by 0.5 percent. The current quarter has 63.2 billing days, compared to 63.5 days in the year-ago quarter.
Currency exchange rates reduced first-quarter year-over-year staffing revenues by $2 million. The strengthening of the euro and pound sterling were more than offset by weaknesses in Canadian and Australian dollars. This reduced year-over-year reported staffing growth rates by 0.2 percent in the first quarter.
We provide a supplemental schedule with our earnings release that shows year-over-year revenue growth rates for our various staffing lines of business on a reported basis, as well as on a same-day, constant-currency basis. The schedule further divides the data between U.S. and non-U.S. operations. You can find the schedule in today’s press release and in the Investor Center of our website. This is a non-GAAP financial measure. We provide it to give you information on certain revenue trends in our staffing operations.
Global revenues for Protiviti were $134 million in the first quarter, with $108 million in revenues in the United States and $26 million in revenues outside the U.S. Global revenues for Protiviti were up 15 percent year over year, with U.S. revenues up 19 percent and non-U.S. revenues flat with the prior year. Protiviti and its independently owned Member Firms serve clients through a network of 75 locations in 25 countries.
Turning now to gross margin: In our temporary and consulting staffing operations, gross margin was 36.1 percent of applicable revenues. This is the same as the prior year’s first quarter.
First-quarter revenues for our permanent placement operations were 9.7 percent of overall staffing revenues, compared to 9.2 percent of staffing revenues in the first quarter one year ago. Together with the temporary and consulting gross margin previously discussed, overall staffing gross margin expanded by 40 basis points versus one year ago, to 42.3 per cent.
First-quarter gross margin for Protiviti was $37 million, or 27.4 percent of Protiviti revenues, compared to $30 million, or 25.7 percent of Protiviti revenues, one year ago. The increase is due primarily to higher staff utilization.
SELLING, GENERAL AND ADMINISTRATIVE COSTS
Staffing SG&A costs were 32.3 percent of staffing revenues in the first quarter versus 32.5 percent in the first quarter of 2013. SG&A costs for Protiviti were 21.9 percent of Protiviti revenues in the first quarter versus 22.5 percent of Protiviti revenues reported this time last year.