Robert Half Reports Second-Quarter Financial Results
07/22/2021 - 04:15 PM
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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SOURCE Robert Half