Robert Half International Inc. (NYSE:RHI) Q2 2018 Earnings Conference Call - Final Transcript
Jul 24, 2018 • 05:00 pm ET
Hello, and welcome to the Robert Half Second Quarter 2018 Conference Call. Our hosts for today's call are Mr. Max Messmer, Chairman and CEO of Robert Half, and Mr. Keith Waddell, Vice Chairman, President and Chief Financial Officer. Mr. Messmer, you may begin.
Harold M. Messmer
Thank you, and good afternoon, everyone. We appreciate you joining us. I'd like to first preface our remarks with a reminder that 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.
However, they are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Some of these risks and uncertainties are described 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 today's call.
For your convenience, our prepared remarks also are available on our website at roberthalf.com. From the home page, click on Investor Center at the bottom left of the page. You will find the Quarterly Conference Calls link in the Investor Center.
Now let's turn our attention to Robert Half's financial results for the second quarter of 2018. Revenues during the quarter were $1.457 billion company wide. This is up 11% on a reported basis and up 10% on a same-day, constant-currency basis compared to the second quarter of 2017. Net income per share in this year's second quarter was $0.89, up 39% compared to the second quarter of last year.
Cash flow from operations in the second quarter was $148 million, and capital expenditures were $9 million. We paid $0.28 dividend to stockholders in June at a total cost of $34 million. We also repurchased 1.1 million Robert Half shares in the second quarter at a cost of $76 million. We have 10.1 million shares available for repurchase under our Board-approved stock repurchase plan. We saw across-the-board strength in our US and international staffing in Protiviti operations during the second quarter as year-over-year growth rates accelerated versus the first quarter.
Favorable global economic trends, a robust job market and positive business sentiment among our small and mid-size client base contributed to the strong quarter. During the second quarter, Robert Half's return on invested capital was 39%.
I'll turn the call over to Keith now for a closer look at our results.
M. Keith Waddell
Thank you, Max. Global revenues were $1.457 billion in the second quarter. This is up 11% from the year-ago period on a reported basis and up 10% on a same-day, constant-currency basis.
Accompanying our earnings release is a supplemental schedule showing year-over-year revenue growth rates on both a reported and as-adjusted basis. These figures are further broken out by US and non-US operations. The term as-adjusted reflects the removal of the impact of billing days, currency fluctuations and certain inter-company adjustments in our international operations.