Robert Half International Inc. (NYSE:RHI) Q3 2019 Earnings Conference Call Transcript

Oct 23, 2019 • 05:00 pm ET

Previous

Robert Half International Inc. (NYSE:RHI) Q3 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Hello, and welcome to the Robert Half Third Quarter 2019 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.

Executive
Harold M. Messmer

Thank you and hello everyone. We appreciate your joining us on today's call. As a reminder, the comments made on our 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 consider 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 for today's call are available in the Investor Center of our website at roberthalf.com. From the home page, click on the Investor Center link at the bottom left of the page.

Now let's review Robert Half's third quarter financial results. Revenues for the company were $1.552 billion, up 6% from last year's third quarter on a reported basis and up 5% on a same-day constant currency basis. Third quarter net income per share was $1.01 versus $0.95 in the same period one year ago. This is a 7% increase year-over-year. Cash flow from operations was $191 million in the third quarter and capital expenditures were $17 million. In September, we distributed a $0.31 per share cash dividend to our shareholders of record for a total cash outlay of $36 million. We also repurchased approximately 1.5 million Robert Half shares during the quarter for $80 million. We have 3.4 million shares available for repurchases under our board-approved stock repurchase plan.

Persistent talent shortages resulted in continued strong demand for our staffing services in the third quarter, particularly in the United States. Robert Half Management Resources was the standout among our staffing lines of business and our Protiviti subsidiary also had a very strong quarter. We are pleased with the continued momentum we are seeing in our US staffing and Protiviti operations. Return on invested capital for the company was 42% in the third quarter.

I'll turn the call over to Keith now for a more detailed look at our third quarter results.

Executive
M. Keith Waddell

Thank you, Max. As just noted global revenues in the third quarter were $1.552 billion. This is up 6% in the prior year's third quarter on a reported basis and up 5% on a same-day constant currency basis from the year ago period. Accompanying our earnings release today as 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 U.S. and non-U.S. operations. The term as adjusted reflects the removal of