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Robert Half Reports Second-Quarter Financial Results

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MENLO PARK, Calif., July 22, 2021 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the second quarter ended June 30, 2021.

For the quarter ended June 30, 2021, net income was $149 million, or $1.33 per share, on revenues of $1.581 billion. Net income for the prior year's second quarter was $46 million, or $.41 per share, on revenues of $1.108 billion.

"We achieved record levels of revenues and earnings in the second quarter due to a broad-based, global acceleration in demand for our staffing and business consulting services," said M. Keith Waddell, president and CEO of Robert Half. "We are particularly pleased with the strength of our permanent placement and Protiviti operations, which grew year-over-year revenues by 102 percent and 62 percent, respectively. Protiviti reached its 15th consecutive quarter of revenue gains with very strong growth in each of its solution areas."

"Return on invested capital for the company was 49 percent in the second quarter," Waddell concluded.

Robert Half management will conduct a conference call today at 5 p.m. EDT. The prepared remarks for this call are available now in the Investor Center of the Robert Half website (www.roberthalf.com/investor-center). Simply click on the Quarterly Conference Calls link. The dial-in number to listen to today's conference call is 877-814-0475 (+1-706-643-9224 outside the United States). The password is "Robert Half."

A taped recording of this call will be available for replay beginning at approximately 8 p.m. EDT today and ending at 11:59 p.m. EDT on August 21. The dial-in number for the replay is 855-859-2056 (+1-404-537-3406 outside the United States). To access the replay, enter conference ID# 5793718. The conference call also will be archived in audio format on the company's website at www.roberthalf.com/investor-center.

Robert Half is the world's first and largest specialized talent solutions firm that connects opportunities at great companies with highly skilled job seekers. We offer contract and permanent placement solutions for finance and accounting, technology, marketing and creative, legal, and administrative and customer support roles. Named to FORTUNE's Most Admired Companies and 100 Best Companies to Work For lists and a Forbes Best Employer for Diversity, Robert Half is the parent company of Protiviti®, a global consulting firm that provides internal audit, risk, business and technology consulting solutions.

Robert Half has operations in more than 400 locations worldwide.

Certain information contained in this press release and its attachments may be deemed forward-looking statements regarding events and financial trends that may affect the company's future operating results or financial positions. These statements may be identified by words such as "estimate", "forecast", "project", "plan", "intend", "believe", "expect", "anticipate", or variations or negatives thereof, or by similar or comparable words or phrases. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the statements.

These risks and uncertainties include, but are not limited to, the following: changes to or new interpretations of U.S. or international tax regulations; the global financial and economic situation; the duration and impact of the COVID-19 pandemic and efforts to mitigate its spread; changes in levels of unemployment and other economic conditions in the United States or foreign countries where the company does business, or in particular regions or industries; reduction in the supply of candidates for contract employment or the company's ability to attract candidates; the entry of new competitors into the marketplace or expansion by existing competitors; the ability of the company to maintain existing client relationships and attract new clients in the context of changing economic or competitive conditions; the impact of competitive pressures, including any change in the demand for the company's services; on the company's ability to maintain its margins; the possibility of the company incurring liability for its activities, including the activities of its contract employees, or for events impacting its contract employees on clients' premises; the possibility that adverse publicity could impact the company's ability to attract and retain clients and candidates; the success of the company in attracting, training, and retaining qualified management personnel and other staff employees; the company's ability to comply with governmental regulations affecting personnel services businesses in particular or employer/employee relationships in general; whether there will be ongoing demand for Sarbanes-Oxley or other regulatory compliance services; the company's reliance on short-term contracts for a significant percentage of its business; litigation relating to prior or current transactions or activities, including litigation that may be disclosed from time to time in the company's SEC filings; the ability of the company to manage its international operations and comply with foreign laws and regulations; the impact of fluctuations in foreign currency exchange rates; the possibility that the additional costs the company will incur as a result of healthcare reform legislation may adversely affect the company's profit margins or the demand for the company's services; the possibility that the company's computer and communications hardware and software systems could be damaged or their service interrupted; and the possibility that the company may fail to maintain adequate financial and management controls and as a result suffer errors in its financial reporting.

Additionally, with respect to Protiviti, other risks and uncertainties include the fact that future success will depend on its ability to retain employees and attract clients; there can be no assurance that there will be ongoing demand for broad based consulting, regulatory compliance, technology services, public sector or other high demand advisory services; failure to produce projected revenues could adversely affect financial results; and there is the possibility of involvement in litigation relating to prior or current transactions or activities.

Because long-term contracts are not a significant part of the company's business, future results cannot be reliably predicted by considering past trends or extrapolating past results. The company undertakes no obligation to update information contained in this release.

A copy of this release is available at www.roberthalf.com/investor-center.

ATTACHED


Summary of Operations

Supplemental Financial Information

Non-GAAP Financial Measures


 

ROBERT HALF INTERNATIONAL INC.

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)



Quarter Ended
June 30,


Six Months
Ended June 30,


2021


2020


2021


2020


(Unaudited)


(Unaudited)









Service revenues

$

1,580,581



$

1,108,326



$

2,978,961



$

2,615,017


Costs of services

915,709



691,791



1,752,378



1,584,094










Gross margin

664,872



416,535



1,226,583



1,030,923










Selling, general and administrative expenses (1)

488,093



407,213



911,155



850,081


(Income) loss from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses) (1)

(27,810)



(48,927)



(39,797)



(8,551)


Amortization of intangible assets

576



330



1,152



668


Interest expense (income), net

151



(105)



105



(1,062)










Income before income taxes

203,862



58,024



353,968



189,787


Provision for income taxes

54,649



11,828



94,157



53,676










Net income

$

149,213



$

46,196



$

259,811



$

136,111










Diluted net income per share

$

1.33



$

.41



$

2.32



$

1.20










Shares:








Basic

110,861



112,865



111,141



113,026


Diluted

111,889



113,121



112,191



113,489



(1) Selling, general and administrative ("SG&A") expenses exclude gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. Under these plans, employees direct the investment of their account balances, and the Company makes cash deposits into an investment trust consistent with these directions. Changes in the Company's deferred compensation obligations noted above are included in SG&A or, in the case of Protiviti, costs of services, while investment income is presented separately. Reclassifications have been made to prior periods' consolidated financial statements to conform to the current presentation. These reclassifications had no impact to previously reported income before income taxes.

 

ROBERT HALF INTERNATIONAL INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)




Six Months Ended
June 30,



2021


2020



(Unaudited)

SELECTED CASH FLOW INFORMATION:





Depreciation


$

27,715



$

31,509


Capitalized cloud computing implementation costs


$

16,236



$

18,846


Capital expenditures


$

16,114



$

22,264


Open market repurchases of common stock (shares)


1,514



983










June 30,



2021


2020



(Unaudited)

SELECTED BALANCE SHEET INFORMATION:





Cash and cash equivalents


$

542,805



$

501,485


Accounts receivable, net


$

907,947



$

665,409


Total assets


$

2,741,368



$

2,402,377


Total current liabilities


$

1,196,312



$

977,167


Total stockholders' equity


$

1,259,250



$

1,156,706


ROBERT HALF INTERNATIONAL INC.
SUPPLEMENTAL FINANCIAL INFORMATION (UNAUDITED)
(in thousands)

Beginning in Q3 2020, the Company modified its presentation of service revenues for Accountemps, OfficeTeam, Robert Half Technology and Robert Half Management Resources to include inter-segment revenues from services provided to Protiviti in connection with the Company's managed business solutions. This is how the Company measures and manages these divisions internally. The combined amount of divisional intersegment revenues with Protiviti are aggregated and then eliminated as a single line item. The Company has prepared the below schedule to provide readers with historical comparative information to better evaluate the related trends.


2019


2020


2021


Q1


Q2


Q3


Q4


Q1


Q2


Q3


Q4


Q1


Q2

SERVICE REVENUES:




















Accountemps

$

490,084



$

494,582



$

501,905



$

498,650



$

489,884



$

331,542



$

351,598



$

385,000



$

417,116



$

453,342


OfficeTeam

252,633



261,952



267,023



259,147



239,979



136,299



173,685



214,985



220,467



263,192


Robert Half Technology

182,426



189,461



195,630



198,314



196,652



162,028



161,007



175,730



172,239



194,233


Robert Half Management Resources

196,003



195,236



200,421



201,097



211,878



165,031



154,917



167,116



183,271



210,550


Elimination of intersegment revenues

(36,519)



(38,519)



(46,518)



(50,883)



(46,273)



(41,514)



(59,816)



(92,393)



(103,818)



(143,036)


Temporary and consultant staffing

1,084,627



1,102,712



1,118,461



1,106,325



1,092,120



753,386



781,391



850,438



889,275



978,281


Permanent placement staffing

131,562



140,894



134,582



126,394



120,489



71,030



87,203



91,387



111,703



143,640


Protiviti

252,341



272,779



299,089



304,666



294,082



283,910



321,303



362,261



397,402



458,660


Total

$

1,468,530



$

1,516,385



$

1,552,132



$

1,537,385



$

1,506,691



$

1,108,326



$

1,189,897



$

1,304,086



$

1,398,380



$

1,580,581






















ROBERT HALF INTERNATIONAL INC.
NON-GAAP FINANCIAL MEASURES

The financial results of Robert Half International Inc. (the "Company") are prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and the rules of the U.S. Securities and Exchange Commission ("SEC"). To help readers understand the Company's financial performance, the Company supplements its GAAP financial results with the following non-GAAP measures: adjusted gross margin; adjusted selling, general and administrative expense; segment income; combined segment income and as adjusted revenue growth rates.

The following measures: adjusted gross margin; adjusted selling, general and administrative expense; and segment income include gains and losses on investments held to fund the Company's obligations under employee deferred compensation plans. The Company provides these measures because they are used by management to review its operational results.

Combined segment income is income before income taxes, adjusted for interest expense (income) and amortization of intangible assets. The Company provides combined segment income because it is how the Company evaluates segment performance.

Variations in the Company's financial results include the impact of changes in foreign currency exchange rates and billing days. The Company provides "as adjusted" revenue growth calculations to remove the impact of these items. These calculations show the year-over-year revenue growth rates for the Company's lines of business on both a reported basis and also on an as-adjusted basis for global, U.S. and international operations. This information is presented for each of the six most recent quarters. The Company has provided this data because it focuses on the Company's revenue growth rates attributable to operating activities and aids in evaluating revenue trends over time. The Company expresses year-over-year revenue changes as calculated percentages using the same number of billing days, constant currency exchange rates, and certain intercompany adjustments.

The non-GAAP financial measures provided herein may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies may calculate such financial results differently. The Company's non-GAAP financial measures are not measurements of financial performance under GAAP and should not be considered as alternatives to amounts presented in accordance with GAAP. The Company does not consider these non-GAAP financial measures to be a substitute for, or superior to, the information provided by GAAP financial results. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is provided on the following pages.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)

(in thousands)



Quarter Ended June 30,


Relationships


2021


2020


2021


2020


2021


2020


Reported


Adjustments


Adjusted (1)


Reported


Adjustments


Adjusted (1)


Reported


Adjusted

SERVICE REVENUES:




















Accountemps

$

453,342



$



$

453,342



$

331,542



$



$

331,542



28.6

%


29.9

%


28.6

%


29.9

%

OfficeTeam

263,192





263,192



136,299





136,299



16.7

%


12.3

%


16.7

%


12.3

%

Robert Half Technology

194,233





194,233



162,028





162,028



12.3

%


14.6

%


12.3

%


14.6

%

Robert Half Management Resources

210,550





210,550



165,031





165,031



13.3

%


14.9

%


13.3

%


14.9

%

Elimination of intersegment revenues

(143,036)





(143,036)



(41,514)





(41,514)



(9.0)

%


(3.7)

%


(9.0)

%


(3.7)

%

Temporary and consultant staffing

978,281





978,281



753,386





753,386



61.9

%


68.0

%


61.9

%


68.0

%

Permanent placement staffing

143,640





143,640



71,030





71,030



9.1

%


6.4

%


9.1

%


6.4

%

Protiviti

458,660





458,660



283,910





283,910



29.0

%


25.6

%


29.0

%


25.6

%

Total

$

1,580,581



$



$

1,580,581



$

1,108,326



$



$

1,108,326



100.0

%


100.0

%


100.0

%


100.0

%





















GROSS MARGIN:




















Temporary and consultant staffing

$

388,070



$



$

388,070



$

279,302



$



$

279,302



39.7

%


37.1

%


39.7

%


37.1

%

Permanent placement staffing

143,454





143,454



70,906





70,906



99.9

%


99.8

%


99.9

%


99.8

%

Protiviti

133,348



4,153



137,501



66,327



6,542



72,869



29.1

%


23.4

%


30.0

%


25.7

%

Total

$

664,872



$

4,153



$

669,025



$

416,535



$

6,542



$

423,077



42.1

%


37.6

%


42.3

%


38.2

%





















SELLING GENERAL AND ADMINISTRATIVE EXPENSE:




















Temporary and consultant staffing

$

315,114



$

(21,054)



$

294,060



$

289,645



$

(38,733)



$

250,912



32.2

%


38.4

%


30.1

%


33.3

%

Permanent placement staffing

115,458



(2,603)



112,855



74,806



(3,652)



71,154



80.4

%


105.3

%


78.6

%


100.2

%

Protiviti

57,521





57,521



42,762





42,762



12.5

%


15.1

%


12.5

%


15.1

%

Total

$

488,093



$

(23,657)



$

464,436



$

407,213



$

(42,385)



$

364,828



30.9

%


36.7

%


29.4

%


32.9

%





















OPERATING/SEGMENT INCOME:




















Temporary and consultant staffing

$

72,956



$

21,054



$

94,010



$

(10,343)



$

38,733



$

28,390



7.5

%


(1.4)

%


9.6

%


3.8

%

Permanent placement staffing

27,996



2,603



30,599



(3,900)



3,652



(248)



19.5

%


(5.5)

%


21.3

%


(0.3)

%

Protiviti

75,827



4,153



79,980



23,565



6,542



30,107



16.5

%


8.3

%


17.4

%


10.6

%

Total

$

176,779



$

27,810



$

204,589



$

9,322



$

48,927



$

58,249



11.2

%


0.8

%


12.9

%


5.3

%

Amortization of intangible assets

576





576



330





330



0.0

%


0.0

%


0.0

%


0.1

%

(Income) loss from investments held in employee deferred compensation trusts

(27,810)



27,810





(48,927)



48,927




1.7

%


4.4

%


0.0

%


0.0

%

Interest expense (income), net

151





151



(105)





(105)



0.0

%


0.0

%


0.0

%


0.0

%

Income before income taxes

$

203,862



$



$

203,862



$

58,024



$



$

58,024



12.9

%


5.2

%


12.9

%


5.2

%


(1)  Changes in the Company's deferred compensation obligations are included in selling, general and administrative expense or, in the case of Protiviti, costs of services, while the related investment income is presented separately. The non-GAAP financial measures shown in the table above are adjusted to reclassify investment income from investments held in employee deferred compensation trusts to the same line item which includes the corresponding change in obligation. These adjustments have no impact to income before income taxes.

 

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)

(in thousands)



Six Months Ended June 30,


Relationships


2021


2020


2021


2020


2021


2020


Reported


Adjustments


Adjusted (1)


Reported


Adjustments


Adjusted (1)


Reported


Adjusted

SERVICE REVENUES:




















Accountemps

$

870,448



$



$

870,448



$

821,426



$



$

821,426



29.3

%


31.4

%


29.3

%


31.4

%

OfficeTeam

483,665





483,665



376,278





376,278



16.2

%


14.4

%


16.2

%


14.4

%

Robert Half Technology

366,406





366,406



358,680





358,680



12.3

%


13.7

%


12.3

%


13.7

%

Robert Half Management Resources

393,878





393,878



376,908





376,908



13.2

%


14.4

%


13.2

%


14.4

%

Elimination of intersegment revenues

(246,840)





(246,840)



(87,786)





(87,786)



(8.3)

%


(3.4)

%


(8.3)

%


(3.4)

%

Temporary and consultant staffing

1,867,557





1,867,557



1,845,506





1,845,506



62.7

%


70.6

%


62.7

%


70.6

%

Permanent placement staffing

255,344





255,344



191,519





191,519



8.6

%


7.3

%


8.6

%


7.3

%

Protiviti

856,060





856,060



577,992





577,992



28.7

%


22.1

%


28.7

%


22.1

%

Total

$

2,978,961



$



$

2,978,961



$

2,615,017



$



$

2,615,017



100.0

%


100.0

%


100.0

%


100.0

%





















GROSS MARGIN:




















Temporary and consultant staffing

$

733,003



$



$

733,003



$

692,298



$



$

692,298



39.2

%


37.5

%


39.2

%


37.5

%

Permanent placement staffing

254,951





254,951



191,186





191,186



99.8

%


99.8

%


99.8

%


99.8

%

Protiviti

238,629



5,842



244,471



147,439



2,871



150,310



27.9

%


25.5

%


28.6

%


26.0

%

Total

$

1,226,583



5,842



$

1,232,425



$

1,030,923



2,871



$

1,033,794



41.2

%


39.4

%


41.4

%


39.5

%





















SELLING GENERAL AND ADMINISTRATIVE EXPENSE:




















Temporary and consultant staffing

$

593,627



(30,312)



$

563,315



$

575,290



$

(5,146)



$

570,144



31.8

%


31.2

%


30.2

%


30.9

%

Permanent placement staffing

210,360



(3,643)



206,717



181,057



(534)



180,523



82.4

%


94.5

%


81.0

%


94.3

%

Protiviti

107,168





107,168



93,734





93,734



12.5

%


16.2

%


12.5

%


16.2

%

Total

$

911,155



(33,955)



$

877,200



$

850,081



$

(5,680)



$

844,401



30.6

%


32.5

%


29.4

%


32.3

%





















OPERATING/SEGMENT INCOME:




















Temporary and consultant staffing

$

139,376



30,312



$

169,688



$

117,008



5,146



$

122,154



7.5

%


6.3

%


9.1

%


6.6

%

Permanent placement staffing

44,591



3,643



48,234



10,129



534



10,663



17.5

%


5.3

%


18.9

%


5.6

%

Protiviti

131,461



5,842



137,303



53,705



2,871



56,576



15.4

%


9.3

%


16.0

%


9.8

%

Total

$

315,428



39,797



$

355,225



$

180,842



8,551



$

189,393



10.6

%


6.9

%


11.9

%


7.2

%

Amortization of intangible assets

1,152





1,152



668





668



0.0

%


0.1

%


0.0

%


0.1

%

(Income) loss from investments held in employee deferred compensation trusts

(39,797)



39,797





(8,551)



8,551





1.3

%


0.3

%


0.0

%


0.0

%

Interest expense (income), net

105





105



(1,062)





(1,062)



0.0

%


0.0

%


0.0

%


0.0

%

Income before income taxes

$

353,968



$



$

353,968



$

189,787



$



$

189,787



11.9

%


7.3

%


11.9

%


7.3

%


(1)  Changes in the Company's deferred compensation obligations are included in selling, general and administrative expense or, in the case of Protiviti, costs of services, while the related investment income is presented separately. The non-GAAP financial measures shown in the table above are adjusted to reclassify investment income from investments held in employee deferred compensation trusts to the same line item which includes the corresponding change in obligation. These adjustments have no impact to income before income taxes.

 

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

COMBINED SEGMENT INCOME RECONCILIATION (UNAUDITED):




Quarter Ended
June 30,



2021


2020






Income before income taxes


$

203,862



$

58,024


Interest expense (income), net


151



(105)


Amortization of intangible assets


576



330


Combined segment income


$

204,589



$

58,249







Six Months Ended
June 30,



2021


2020






Income before income taxes


$

353,968



$

189,787


Interest expense (income), net


105



(1,062)


Amortization of intangible assets


1,152



668


Combined segment income


$

355,225



$

189,393


 

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATES (%) (UNAUDITED): 




Year-Over-Year Growth Rates

(As Reported)


Non-GAAP Year-Over-Year Growth Rates

(As Adjusted)



2020


2021


2020


2021



Q1


Q2


Q3


Q4


Q1


Q2


Q1


Q2


Q3


Q4


Q1


Q2

Global

























Accountemps


0.0


-33.0


-29.9


-22.8


-14.9


36.7


-0.7


-32.3


-30.2


-23.1


-14.6


34.4

OfficeTeam


-5.0


-48.0


-35.0


-17.0


-8.1


93.1


-5.7


-47.8


-35.8


-18.2


-8.7


89.5

RH Technology


7.8


-14.5


-17.7


-11.4


-12.4


19.9


6.8


-14.2


-18.2


-11.9


-12.4


17.9

RH Management Resources


8.1


-15.5


-22.7


-16.9


-13.5


27.6


7.5


-14.8


-23.5


-18.1


-14.3


24.0

Elimination of intersegment revenues (1)


26.7


7.8


28.6


81.6


124.4


244.5


24.9


7.7


28.2


81.5


127.3


240.9

Temporary and consultant staffing


0.7


-31.7


-30.1


-23.1


-18.6


29.9


0.0


-31.2


-30.7


-23.8


-18.9


27.2

Permanent placement staffing


-8.4


-49.6


-35.2


-27.7


-7.3


102.2


-9.0


-49.1


-35.7


-28.5


-8.1


96.9

Total staffing


-0.3


-33.7


-30.7


-23.6


-17.5


36.1


-1.0


-33.2


-31.2


-24.3


-17.8


33.2

Protiviti


16.5


4.1


7.4


18.9


35.1


61.6


15.5


4.5


6.4


17.9


34.7


58.8

Total


2.6


-26.9


-23.3


-15.2


-7.2


42.6


1.9


-26.4


-23.9


-15.9


-7.6


39.7


























United States

























Temporary and consultant staffing


2.0


-31.7


-31.0


-24.1


-20.3


27.5


0.5


-31.7


-31.3


-23.9


-19.4


27.7

Permanent placement staffing


-4.9


-51.6


-37.1


-31.3


-12.4


109.3


-6.3


-51.6


-37.3


-31.0


-11.4


109.6

Total staffing


1.3


-33.7


-31.6


-24.8


-19.6


33.6


-0.2


-33.7


-31.9


-24.6


-18.6


33.8

Protiviti


21.3


6.4


10.8


22.9


35.5


62.6


19.5


6.3


10.3


23.3


37.1


62.8

Total


4.7


-26.5


-23.3


-15.3


-8.7


41.1


3.2


-26.5


-23.7


-15.0


-7.6


41.3


























International

























Temporary and consultant staffing


-3.8


-31.8


-27.0


-19.3


-12.3


38.6


-1.9


-28.9


-28.4


-23.5


-17.0


25.1

Permanent placement staffing


-15.9


-45.0


-30.9


-19.3


5.2


87.8


-14.6


-43.2


-31.7


-23.0


0.3


70.5

Total staffing


-5.6


-33.8


-27.6


-19.3


-10.1


44.8


-3.7


-31.1


-28.9


-23.4


-14.8


30.9

Protiviti


1.3


-3.9


-5.0


4.3


33.8


57.6


2.4


-1.5


-8.0


-1.7


26.1


43.5

Total


-4.4


-28.4


-23.4


-14.7


-2.0


48.0


-2.7


-25.7


-25.0


-19.2


-7.2


33.9

(1) Service revenues for Accountemps, OfficeTeam, Robert Half Technology and Robert Half Management Resources include intersegment revenues, which represent revenues from services provided to Protiviti in connection with the Company's blended business solutions. Intersegment revenues for each line of business are aggregated and then eliminated as a single line item.

The non-GAAP financial measures included in the table above adjust for the following items:

Foreign Currency Translation. The "As Reported" revenue growth rates are based upon reported revenues, which include the impact of changes in foreign currency exchange rates. In order to calculate "Constant Currency" revenue growth rates, as reported amounts are retranslated using foreign exchange rates from the prior year's comparable period.

Billing Days. The "As Reported" revenue growth rates are based upon reported revenues. Management calculates a global, weighted-average number of billing days for each reporting period based upon inputs from all countries and all lines of business. In order to remove the fluctuations caused by comparable periods having different billing days, the company calculates "same billing day" revenue growth rates by dividing each comparative period's reported revenues by the calculated number of billing days for that period to arrive at a "per billing day" amount. The "same billing day" growth rates are then calculated based upon the "per billing day" amounts.

The term "As Adjusted" means that the impact of different billing days, constant currency fluctuations, and certain intercompany adjustments are removed from the revenue growth rate calculation. A reconciliation of the non-GAAP year-over-year revenue growth rates to the "As Reported" year-over-year revenue growth rates is included herein on Pages 11-13.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – GLOBAL



 Q1 2020


 Q2 2020


 Q3 2020


 Q4 2020


Q1 2021


 Q2 2021

Accountemps













As Reported


0.0



-33.0



-29.9



-22.8



-14.9



36.7


Billing Days Impact


-1.5



-0.1



-0.3



-0.1



1.1



0.0


Currency Impact


0.8



0.8



0.0



-0.2



-0.8



-2.3


As Adjusted


-0.7



-32.3



-30.2



-23.1



-14.6



34.4


OfficeTeam













As Reported


-5.0



-48.0



-35.0



-17.0



-8.1



93.1


Billing Days Impact


-1.3



-0.1



-0.2



-0.1



1.1



0.0


Currency Impact


0.6



0.3



-0.6



-1.1



-1.7



-3.6


As Adjusted


-5.7



-47.8



-35.8



-18.2



-8.7



89.5


Robert Half Technology













As Reported


7.8



-14.5



-17.7



-11.4



-12.4



19.9


Billing Days Impact


-1.5



-0.1



-0.2



0.0



1.1



0.0


Currency Impact


0.5



0.4



-0.3



-0.5



-1.1



-2.0


As Adjusted


6.8



-14.2



-18.2



-11.9



-12.4



17.9


Robert Half Management Resources













As Reported


8.1



-15.5



-22.7



-16.9



-13.5



27.6


Billing Days Impact


-1.5



-0.1



-0.2



0.0



1.1



0.0


Currency Impact


0.9



0.8



-0.6



-1.2



-1.9



-3.6


As Adjusted


7.5



-14.8



-23.5



-18.1



-14.3



24.0


Elimination of intersegment revenues













As Reported


26.7



7.8



28.6



81.6



124.4



244.5


Billing Days Impact


-1.8



-0.2



-0.4



-0.1



2.7



0.0


Currency Impact


0.0



0.1



0.0



0.0



0.2



-3.6


As Adjusted


24.9



7.7



28.2



81.5



127.3



240.9


Temporary and consultant staffing













As Reported


0.7



-31.7



-30.1



-23.1



-18.6



29.9


Billing Days Impact


-1.4



-0.1



-0.3



0.0



1.0



0.0


Currency Impact


0.7



0.6



-0.3



-0.7



-1.3



-2.7


As Adjusted


0.0



-31.2



-30.7



-23.8



-18.9



27.2


Permanent placement staffing













As Reported


-8.4



-49.6



-35.2



-27.7



-7.3



102.2


Billing Days Impact


-1.4



-0.1



-0.2



0.0



1.1



0.0


Currency Impact


0.8



0.6



-0.3



-0.8



-1.9



-5.3


As Adjusted


-9.0



-49.1



-35.7



-28.5



-8.1



96.9


Total staffing













As Reported


-0.3



-33.7



-30.7



-23.6



-17.5



36.1


Billing Days Impact


-1.4



-0.1



-0.2



0.0



1.1



0.0


Currency Impact


0.7



0.6



-0.3



-0.7



-1.4



-2.9


As Adjusted


-1.0



-33.2



-31.2



-24.3



-17.8



33.2


Protiviti













As Reported


16.5



4.1



7.4



18.9



35.1



61.6


Billing Days Impact


-1.6



-0.1



-0.3



0.0



1.6



0.0


Currency Impact


0.6



0.5



-0.7



-1.0



-2.0



-2.8


As Adjusted


15.5



4.5



6.4



17.9



34.7



58.8


Total













As Reported


2.6



-26.9



-23.3



-15.2



-7.2



42.6


Billing Days Impact


-1.4



-0.1



-0.2



0.0



1.1



0.0


Currency Impact


0.7



0.6



-0.4



-0.7



-1.5



-2.9


As Adjusted


1.9



-26.4



-23.9



-15.9



-7.6



39.7


 

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – UNITED STATES



 Q1 2020


 Q2 2020


 Q3 2020


 Q4 2020


Q1 2021


 Q2 2021

Temporary and consultant staffing





As Reported


2.0



-31.7



-31.0



-24.1



-20.3



27.5


Billing Days Impact


-1.5



0.0



-0.3



0.2



0.9



0.2


Currency Impact













As Adjusted


0.5



-31.7



-31.3



-23.9



-19.4



27.7















Permanent placement staffing













As Reported


-4.9



-51.6



-37.1



-31.3



-12.4



109.3


Billing Days Impact


-1.4



0.0



-0.2



0.3



1.0



0.3


Currency Impact













As Adjusted


-6.3



-51.6



-37.3



-31.0



-11.4



109.6















Total staffing













As Reported


1.3



-33.7



-31.6



-24.8



-19.6



33.6


Billing Days Impact


-1.5



0.0



-0.3



0.2



1.0



0.2


Currency Impact













As Adjusted


-0.2



-33.7



-31.9



-24.6



-18.6



33.8















Protiviti













As Reported


21.3



6.4



10.8



22.9



35.5



62.6


Billing Days Impact


-1.8



-0.1



-0.5



0.4



1.6



0.2


Currency Impact













As Adjusted


19.5



6.3



10.3



23.3



37.1



62.8















Total













As Reported


4.7



-26.5



-23.3



-15.3



-8.7



41.1


Billing Days Impact


-1.5



0.0



-0.4



0.3



1.1



0.2


Currency Impact













As Adjusted


3.2



-26.5



-23.7



-15.0



-7.6



41.3


 

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED):


Year-Over-Year Revenue Growth – INTERNATIONAL



 Q1 2020


 Q2 2020


 Q3 2020


 Q4 2020


Q1 2021


 Q2 2021

Temporary and consultant staffing





As Reported


-3.8



-31.8



-27.0



-19.3



-12.3



38.6


Billing Days Impact


-1.4



0.0



0.0



-1.0



1.4



-0.8


Currency Impact


3.3



2.9



-1.4



-3.2



-6.1



-12.7


As Adjusted


-1.9



-28.9



-28.4



-23.5



-17.0



25.1















Permanent placement staffing













As Reported


-15.9



-45.0



-30.9



-19.3



5.2



87.8


Billing Days Impact


-1.1



-0.1



0.0



-1.0



1.7



-1.1


Currency Impact


2.4



1.9



-0.8



-2.7



-6.6



-16.2


As Adjusted


-14.6



-43.2



-31.7



-23.0



0.3



70.5















Total staffing













As Reported


-5.6



-33.8



-27.6



-19.3



-10.1



44.8


Billing Days Impact


-1.3



-0.1



0.0



-1.0



1.5



-0.8


Currency Impact


3.2



2.8



-1.3



-3.1



-6.2



-13.1


As Adjusted


-3.7



-31.1



-28.9



-23.4



-14.8



30.9















Protiviti













As Reported


1.3



-3.9



-5.0



4.3



33.8



57.6


Billing Days Impact


-1.4



0.0



0.1



-1.4



2.1



-0.8


Currency Impact


2.5



2.4



-3.1



-4.6



-9.8



-13.3


As Adjusted


2.4



-1.5



-8.0



-1.7



26.1



43.5















Total













As Reported


-4.4



-28.4



-23.4



-14.7



-2.0



48.0


Billing Days Impact


-1.3



0.0



0.1



-1.1



1.6



-0.9


Currency Impact


3.0



2.7



-1.7



-3.4



-6.8



-13.2


As Adjusted


-2.7



-25.7



-25.0



-19.2



-7.2



33.9


 

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About RHI

robert half is the world’s first and largest specialized staffing firm, providing skilled professionals in the fields of accounting and finance, technology, legal, creative, marketing, and administration. we have more than 400 consulting and staffing locations worldwide. founded in 1948, robert half pioneered the concept of professional staffing services. today, we offer businesses a full spectrum of specialized staffing and consulting solutions. robert half has appeared on fortune® magazine's "most admired companies" list every year since 1998 and also appears on ethisphere's 2013 list of the "world's most ethical companies." the company is traded on the new york stock exchange (symbol: rhi) and is a member of the s&p 500 index and the ftse4good responsible investment index. robert half also is the parent company of protiviti®, a global consulting and internal audit firm composed of experts in risk, advisory and transaction services.