Robert Half Posts Big Declines in Staffing Revenues
February 1, 2021 – Robert Half International Inc./(NYSE:RHI) posted full-year revenues of $5.109 billion, down 15.9 percent from $6.074 billion the prior year. The Menlo Park, CA-based recruiting company posted fourth quarter revenues of $1.304 billion, a decrease of 14.3 percent. It reported net income for the year of $306 million, or $2.70 per share. For the year ended Dec. 31, 2019, net income was $454 million, or $3.90 per share. For the quarter ended Dec. 31, 2020, net income was $94 million, or $.84 per share, on revenues of $1.304 billion, compared to net income of $113 million, or $.98 per share, in Q4 2019.
“Fourth-quarter results for both our Protiviti and staffing operations were very strong and exceeded the top end of our guidance range,” said M. Keith Waddell, president and CEO of Robert Half. “Protiviti reported its 13th consecutive quarter of year-on-year revenue gains, with particular strength in its technology consulting practice and managed solutions with staffing. Our staffing operations reported broad-based, double-digit, quarter-on-quarter sequential revenue growth on an as-adjusted basis,” he said. “Return on invested capital for the company was 31 percent in the fourth quarter.”
Operating Segments
Global Staffing revenues of $942 million declined 23.6 percent year over year on a reported basis as well as 24.3 percent on as-adjusted basis. U.S. staffing revenues of $723 million were down 24.8 percent on a reported and 24.6 percent on an as-adjusted basis. Non-U.S. staffing revenues declined 19.3 percent on a reported basis and 23.4 percent on an as-adjusted basis to $219 million. The quarter had 61.7 billing days compared with 64.3 in the year-ago quarter. At present, Robert Half operates 326 staffing locations worldwide, with 88 locations situated in 17 countries outside the U.S.
Protiviti revenues came in at $362 million, which increased 18.9 percent year over year on a reported basis and 17.9 percent on an as-adjusted basis. The U.S. Protiviti revenues of $294 million increased 22.9 percent year over year on a reported basis and 23.3 percent on an as-adjusted basis. Non-U.S Protiviti revenues of $68 million declined 4.3 percent on a reported basis and 1.7 percent on an as-adjusted basis. Currently, Protiviti, along with its independently owned member firms, has a network of 86 locations in 27 countries.
Looking Ahead
“We enter 2021 with renewed optimism about Robert Half’s positioning for future growth,” said Mr. Waddell. “We have retained our key staff, and they are committed to driving our success as the backbone of the enterprise. Our aggressive go-to-market strategy during the pandemic with clients in the public sector and financial institutions of all sizes has yielded meaningful wins and new relationships.”
Caldwell Posts Flat Q1 Revenues
As the pandemic continues to impact executive search firms around the world, Caldwell delivers results for its fiscal 2021 first quarter. It reveals flat growth from a year ago. Caldwell also announced changes to its leadership team as the firm expands operations. Let’s go inside the numbers.
For the first quarter of 2021, Robert Half expects revenues in the range of $1.29 billion to $1.37 billion, the midpoint ($1.33 billion) of which is higher than the Zacks Consensus Estimate of $1.24 billion.
Shares in Robert Half were up 2.73 percent to $66.57 upon release of its numbers. The firm set a new 52-week high on Friday when its stock reached $73.35, according to FT.com. The company had a market cap of $7.39 billion.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media
