PR Newswire | Jan 28, 2021 04:16PM EST

01/28 15:15 CST

Robert Half Reports Fourth-Quarter Financial Results MENLO PARK, Calif., Jan. 28, 2021

MENLO PARK, Calif., Jan. 28, 2021 /PRNewswire/ -- Robert Half International Inc. (NYSE: RHI) today reported revenues and earnings for the fourth quarter ended December 31, 2020.

For the quarter ended December 31, 2020, net income was $94 million, or $.84 per share, on revenues of $1.304 billion. Net income for the prior year's fourth quarter was $113 million, or $.98 per share, on revenues of $1.537 billion.

For the year ended December 31, 2020, net income was $306 million, or $2.70 per share, on revenues of $5.109 billion. For the year ended December 31, 2019, net income was $454 million, or $3.90 per share, on revenues of $6.074 billion.

"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."

Waddell added, "Return on invested capital for the company was 31 percent in the fourth quarter."

Robert Half management will conduct a conference call today at 5 p.m. EST. 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. EST today and ending at 11:59 p.m. EST on February 27. 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# 1755918. The conference call also will be archived in audio format on the company's website at www.roberthalf.com/investor-center.

Founded in 1948, Robert Half is the world's first and largest specialized staffing firm and a recognized leader in professional consulting and staffing services. The company's specialized staffing divisions include Accountemps(r), Robert Half(r) Finance & Accounting and Robert Half(r) Management Resources, for contract, full-time and senior-level project professionals, respectively, in the fields of accounting and finance; OfficeTeam(r), for highly skilled administrative support professionals; Robert Half(r) Technology, for project and full-time technology professionals; Robert Half(r) Legal, for project and full-time staffing of lawyers, paralegals and legal support personnel; and The Creative Group(r), for creative, digital, marketing, advertising and public relations professionals. Robert Half also is the parent company of Protiviti(r), a global consulting firm that provides clients with consulting solutions in finance, technology, operations, data, analytics, governance, risk and internal audit.

Robert Half has staffing and consulting 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 Sarbanes-Oxley or other regulatory compliance 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.

Summary of Operations ATTACHED: Supplemental Financial Information Non-GAAP Financial Measures

ROBERT HALF INTERNATIONAL INC.

SUMMARY OF OPERATIONS

(in thousands, except per share amounts)



Quarter Year Ended December 31, Ended December 31,

2020 2019 2020 2019

(Unaudited) (Unaudited)



Service revenues $1,304,086$1,537,385$5,109,000$6,074,432

Costs of services 789,744 900,524 3,096,389 3,549,303



Gross margin 514,342 636,861 2,012,611 2,525,129



Selling, general and administrative 425,161 503,922 1,666,041 1,958,295 expenses

Income from investments held in employee deferred compensation (which is(40,542) (20,289) (75,188) (54,917) completely offset by related costs and expenses) (1)

Amortization of 217 339 1,219 1,361 intangible assets

Interest income, net (79) (1,357) (1,343) (5,125)



Income before income 129,585 154,246 421,882 625,515 taxes

Provision for income 35,169 41,404 115,606 171,082 taxes



Net income $94,416 $112,842 $306,276 $454,433



Diluted net income per$.84 $.98 $2.70 $3.90 share



Shares:

Basic 112,059 114,034 112,729 115,656

Diluted 112,941 114,862 113,318 116,411

(1) Selling, general and administrative ("SG&A") expenses exclude gains andlosses on investments held to fund the Company's obligations under employeedeferred compensation plans. Under these plans, employees direct the investmentof their account balances, and the Company makes cash deposits into aninvestment trust consistent with these directions. Changes in the Company'sdeferred compensation obligations noted above are included in SG&A or, in thecase of Protiviti, direct cost, while investment income is presentedseparately. Reclassifications have been made to prior periods' consolidatedfinancial statements to conform to the current presentation. Thesereclassifications had no impact to previously reported income before incometaxes.

ROBERT HALF INTERNATIONAL INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)



Quarter Year Ended December 31, Ended December 31,

2020 2019 2020 2019

(Unaudited) (Unaudited)

SERVICE REVENUES:

Accountemps $385,000 29.5 %$498,650 32.4 %$1,558,02430.5 %$1,985,22132.6 %

OfficeTeam 214,985 16.5 %259,147 16.9 %764,947 15.0 %1,040,755 17.1 %

Robert Half 175,730 13.5 %198,314 12.9 %695,418 13.6 %765,831 12.6 %Technology

Robert Half Management 167,116 12.8 %201,097 13.1 %698,942 13.7 %792,757 13.1 %Resources

Elimination of (92,393) (7.1)%(50,883) (3.3)%(239,996) (4.7)%(172,439) (2.8)%intersegment revenues (1)

Temporary and 850,438 65.2 %1,106,325 72.0 %3,477,335 68.1 %4,412,125 72.6 %consultant staffing

Permanent placement 91,387 7.0 %126,394 8.2 %370,109 7.2 %533,432 8.8 %staffing

Protiviti 362,261 27.8 %304,666 19.8 %1,261,556 24.7 %1,128,875 18.6 %

Total $1,304,086100.0%$1,537,385100.0%$5,109,000100.0%$6,074,432100.0%



GROSS MARGIN:

Temporary and $327,181 38.5 %$420,248 38.0 %$1,312,79737.8 %$1,677,48938.0 %consultant staffing

Permanent placement 91,172 99.8 %126,135 99.8 %369,401 99.8 %532,435 99.8 %staffing

Protiviti 95,989 26.5 %90,478 29.7 %330,413 26.2 %315,205 27.9 %

Total $514,342 39.4 %$636,861 41.4 %$2,012,61139.4 %$2,525,12941.6 %



SEGMENT INCOME:

Temporary and $71,346 8.4 %$97,469 8.8 %$237,279 6.8 %$410,153 9.3 %consultant staffing

Permanent placement 8,008 8.8 %15,167 12.0 %28,799 7.8 %83,885 15.7 %staffing

Protiviti 50,369 13.9 %40,592 13.3 %155,680 12.3 %127,713 11.3 %

Combined segment $129,723 9.9 %$153,228 10.0 %$421,758 8.3 %$621,751 10.2 %income (2)



SELECTED CASH FLOW INFORMATION:

Depreciation$15,184 $15,779 $62,281 $64,264

Capital $4,499 $14,326 $33,377 $59,464 expenditures

Open market repurchases of common 1,074 988 2,506 4,253 stock (shares)



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

(2) Combined segment income is a non-GAAP measure described further on Page 7.

ROBERT HALF INTERNATIONAL INC.SUPPLEMENTAL FINANCIAL INFORMATION(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 intersegment revenues from services provided to Protiviti in connection with the Company's blended business solutions. This is how the Company now measures and manages these divisions internally and, prospectively it is how the Company will report them externally. 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.

2018 2019 2020

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

SERVICE REVENUES:

Accountemps $476,055 $488,400 $486,240 $490,849 $490,084 $494,582 $501,905 $498,650 $489,884 $331,542 $351,598 $385,000

OfficeTeam 261,642 268,902 265,758 269,125 252,633 261,952 267,023 259,147 239,979 136,299 173,685 214,985

Robert Half Technology 166,102 178,711 185,687 186,666 182,426 189,461 195,630 198,314 196,652 162,028 161,007 175,730

Robert Half Management 186,690 182,737 181,638 187,745 196,003 195,236 200,421 201,097 211,878 165,031 154,917 167,116 Resources

Elimination of intersegment(24,201) (30,776) (35,557) (41,847) (36,519) (38,519) (46,518) (50,883) (46,273) (41,514) (59,816) (92,393) revenues

Temporary and consultant 1,066,288 1,087,974 1,083,766 1,092,538 1,084,627 1,102,712 1,118,461 1,106,325 1,092,120 753,386 781,391 850,438 staffing

Permanent placement 121,400 135,038 129,667 125,884 131,562 140,894 134,582 126,394 120,489 71,030 87,203 91,387 staffing

Protiviti 207,645 234,042 252,793 263,236 252,341 272,779 299,089 304,666 294,082 283,910 321,303 362,261

Total $1,395,333$1,457,054$1,466,226$1,481,658$1,468,530$1,516,385$1,552,132$1,537,385$1,506,691$1,108,326$1,189,897$1,304,086

ROBERT HALF INTERNATIONAL INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(in thousands)



December 31,

2020 2019

(Unaudited)

SELECTED BALANCE SHEET INFORMATION:

Cash and cash equivalents $574,426 $270,478

Accounts receivable, less allowances$714,163 $832,797

Total assets $2,557,424$2,311,408

Total current liabilities $1,046,626$940,692

Notes payable, less current portion $- $239

Total stockholders' equity $1,205,289$1,143,683

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: as adjusted revenue growth rates; adjusted gross margin; adjusted selling, general and administrative expense; segment income; and combined segment income.

Variations in the Company's financial results include the impact of changes in foreign currency exchange rates, billing days, and certain intercompany adjustments. 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 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 income and amortization of intangible assets. The Company provides combined segment income because it is how the Company evaluates segment performance.

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

REVENUE GROWTH RATES (%) (UNAUDITED)



Year-Over-Year Growth Rates Non-GAAP Year-Over-Year Growth Rates (As Reported) (As Adjusted)

2019 2020 2019 2020

Q3 Q4 Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 Q3 Q4

Global

Accountemps 3.2 1.6 0.0 -33.0-29.9-22.82.7 2.1 -0.7 -32.3-30.2-23.1

OfficeTeam 0.5 -3.7-5.0 -48.0-35.0-17.00.1 -3.1-5.7 -47.8-35.8-18.2

RH Technology5.4 6.2 7.8 -14.5-17.7-11.45.2 7.0 6.8 -14.2-18.2-11.9

RH Management10.37.1 8.1 -15.5-22.7-16.913.910.37.5 -14.8-23.5-18.1Resources

Elimination of 30.821.626.7 7.8 28.6 81.6 29.321.624.9 7.7 28.2 81.5 intersegment revenues (1)

Temporary and consultant 3.2 1.3 0.7 -31.7-30.1-23.13.4 2.2 0.0 -31.2-30.7-23.8staffing

Permanent placement 3.8 0.4 -8.4 -49.6-35.2-27.73.4 0.9 -9.0 -49.1-35.7-28.5staffing

Total 3.3 1.2 -0.3 -33.7-30.7-23.63.4 2.1 -1.0 -33.2-31.2-24.3staffing

Protiviti 18.315.716.5 4.1 7.4 18.9 14.614.115.5 4.5 6.4 17.9

Total 5.9 3.8 2.6 -26.9-23.3-15.25.4 4.3 1.9 -26.4-23.9-15.9



United States

Temporary and consultant 5.7 3.0 2.0 -31.7-31.0-24.14.5 3.2 0.5 -31.7-31.3-23.9staffing

Permanent placement 6.5 3.0 -4.9 -51.6-37.1-31.35.3 3.2 -6.3 -51.6-37.3-31.0staffing

Total 5.8 3.0 1.3 -33.7-31.6-24.84.5 3.2 -0.2 -33.7-31.9-24.6staffing

Protiviti 17.517.321.3 6.4 10.8 22.9 16.217.519.5 6.3 10.3 23.3

Total 7.9 5.6 4.7 -26.5-23.3-15.36.6 5.7 3.2 -26.5-23.7-15.0



International

Temporary and consultant -5.0-4.8-3.8 -31.8-27.0-19.3-0.2-1.0-1.9 -28.9-28.4-23.5staffing

Permanent placement -2.1-5.3-15.9-45.0-30.9-19.3-0.6-4.1-14.6-43.2-31.7-23.0staffing

Total -4.6-4.8-5.6 -33.8-27.6-19.3-0.3-1.5-3.7 -31.1-28.9-23.4staffing

Protiviti 21.210.41.3 -3.9 -5.0 4.3 9.3 3.3 2.4 -1.5 -8.0 -1.7

Total -0.7-2.2-4.4 -28.4-23.4-14.71.4 -0.6-2.7 -25.7-25.0-19.2

(1) Service revenues for Accountemps, OfficeTeam, Robert Half Technology andRobert Half Management Resources include intersegment revenues, which representrevenues from services provided to Protiviti in connection with the Company'sblended business solutions. Intersegment revenues for each line of business areaggregated 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.

Intercompany Adjustments. The "As Reported" revenue growth rates are based upon reported revenues. In order to remove the fluctuations caused by the impact of certain intercompany adjustments, applicable comparative period revenues are reclassified to conform with the current period presentation.

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 9-11.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED)



Year-Over-Year Revenue Growth - GLOBAL

Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020 Q4 2020

Accountemps

As Reported 3.2 1.6 0.0 -33.0 -29.9 -22.8

Billing Days Impact -1.3 0.0 -1.5 -0.1 -0.3 -0.1

Currency Impact 0.8 0.5 0.8 0.8 0.0 -0.2

As Adjusted 2.7 2.1 -0.7 -32.3 -30.2 -23.1

OfficeTeam

As Reported 0.5 -3.7 -5.0 -48.0 -35.0 -17.0

Billing Days Impact -1.3 0.0 -1.3 -0.1 -0.2 -0.1

Currency Impact 0.9 0.6 0.6 0.3 -0.6 -1.1

As Adjusted 0.1 -3.1 -5.7 -47.8 -35.8 -18.2

Robert Half Technology

As Reported 5.4 6.2 7.8 -14.5 -17.7 -11.4

Billing Days Impact -1.4 0.1 -1.5 -0.1 -0.2 0.0

Currency Impact 0.5 0.3 0.5 0.4 -0.3 -0.5

Intercompany 0.7 0.4 ? ? ? ? Adjustments

As Adjusted 5.2 7.0 6.8 -14.2 -18.2 -11.9

Robert Half Management Resources

As Reported 10.3 7.1 8.1 -15.5 -22.7 -16.9

Billing Days Impact -1.4 0.0 -1.5 -0.1 -0.2 0.0

Currency Impact 1.1 0.7 0.9 0.8 -0.6 -1.2

Intercompany 3.9 2.5 ? ? ? ? Adjustments

As Adjusted 13.9 10.3 7.5 -14.8 -23.5 -18.1

Elimination of intersegment revenues

As Reported 30.8 21.6 26.7 7.8 28.6 81.6

Billing Days Impact -1.6 0.0 -1.8 -0.2 -0.4 -0.1

Currency Impact 0.1 0.0 0.0 0.1 0.0 0.0

As Adjusted 29.3 21.6 24.9 7.7 28.2 81.5

Temporary and consultant staffing

As Reported 3.2 1.3 0.7 -31.7 -30.1 -23.1

Billing Days Impact -1.3 0.0 -1.4 -0.1 -0.3 0.0

Currency Impact 0.9 0.5 0.7 0.6 -0.3 -0.7

Intercompany 0.6 0.4 ? ? ? ? Adjustments

As Adjusted 3.4 2.2 0.0 -31.2 -30.7 -23.8

Permanent placement staffing

As Reported 3.8 0.4 -8.4 -49.6 -35.2 -27.7

Billing Days Impact -1.4 0.0 -1.4 -0.1 -0.2 0.0

Currency Impact 1.0 0.5 0.8 0.6 -0.3 -0.8

As Adjusted 3.4 0.9 -9.0 -49.1 -35.7 -28.5

Total staffing

As Reported 3.3 1.2 -0.3 -33.7 -30.7 -23.6

Billing Days Impact -1.4 0.0 -1.4 -0.1 -0.2 0.0

Currency Impact 0.9 0.5 0.7 0.6 -0.3 -0.7

Intercompany 0.6 0.4 ? ? ? ? Adjustments

As Adjusted 3.4 2.1 -1.0 -33.2 -31.2 -24.3

Protiviti

As Reported 18.3 15.7 16.5 4.1 7.4 18.9

Billing Days Impact -1.4 0.1 -1.6 -0.1 -0.3 0.0

Currency Impact 0.8 0.3 0.6 0.5 -0.7 -1.0

Intercompany -3.1 -2.0 ? ? ? ? Adjustments

As Adjusted 14.6 14.1 15.5 4.5 6.4 17.9

Total

As Reported 5.9 3.8 2.6 -26.9 -23.3 -15.2

Billing Days Impact -1.4 0.0 -1.4 -0.1 -0.2 0.0

Currency Impact 0.9 0.5 0.7 0.6 -0.4 -0.7

As Adjusted 5.4 4.3 1.9 -26.4 -23.9 -15.9

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED)



Year-Over-Year Revenue Growth - UNITED STATES

Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020 Q4 2020

Temporary and consultant staffing

As Reported 5.7 3.0 2.0 -31.7 -31.0 -24.1

Billing Days Impact -1.2 0.2 -1.5 0.0 -0.3 0.2

Currency Impact ? ? ? ? ? ?

As Adjusted 4.5 3.2 0.5 -31.7 -31.3 -23.9



Permanent placement staffing

As Reported 6.5 3.0 -4.9 -51.6 -37.1 -31.3

Billing Days Impact -1.2 0.2 -1.4 0.0 -0.2 0.3

Currency Impact ? ? ? ? ? ?

As Adjusted 5.3 3.2 -6.3 -51.6 -37.3 -31.0



Total staffing

As Reported 5.8 3.0 1.3 -33.7 -31.6 -24.8

Billing Days Impact -1.3 0.2 -1.5 0.0 -0.3 0.2

Currency Impact ? ? ? ? ? ?

As Adjusted 4.5 3.2 -0.2 -33.7 -31.9 -24.6



Protiviti

As Reported 17.5 17.3 21.3 6.4 10.8 22.9

Billing Days Impact -1.3 0.2 -1.8 -0.1 -0.5 0.4

Currency Impact ? ? ? ? ? ?

As Adjusted 16.2 17.5 19.5 6.3 10.3 23.3



Total

As Reported 7.9 5.6 4.7 -26.5 -23.3 -15.3

Billing Days Impact -1.3 0.1 -1.5 0.0 -0.4 0.3

Currency Impact ? ? ? ? ? ?

As Adjusted 6.6 5.7 3.2 -26.5 -23.7 -15.0

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

REVENUE GROWTH RATE (%) RECONCILIATION (UNAUDITED)



Year-Over-Year Revenue Growth - INTERNATIONAL

Q3 2019Q4 2019Q1 2020Q2 2020Q3 2020 Q4 2020

Temporary and consultant staffing

As Reported -5.0 -4.8 -3.8 -31.8 -27.0 -19.3

Billing Days Impact -1.6 -0.4 -1.4 0.0 0.0 -1.0

Currency Impact 3.8 2.4 3.3 2.9 -1.4 -3.2

Intercompany 2.6 1.8 ? ? ? ? Adjustments

As Adjusted -0.2 -1.0 -1.9 -28.9 -28.4 -23.5



Permanent placement staffing

As Reported -2.1 -5.3 -15.9 -45.0 -30.9 -19.3

Billing Days Impact -1.5 -0.4 -1.1 -0.1 0.0 -1.0

Currency Impact 3.0 1.6 2.4 1.9 -0.8 -2.7

As Adjusted -0.6 -4.1 -14.6 -43.2 -31.7 -23.0



Total staffing

As Reported -4.6 -4.8 -5.6 -33.8 -27.6 -19.3

Billing Days Impact -1.6 -0.6 -1.3 -0.1 0.0 -1.0

Currency Impact 3.7 2.3 3.2 2.8 -1.3 -3.1

Intercompany 2.2 1.6 ? ? ? ? Adjustments

As Adjusted -0.3 -1.5 -3.7 -31.1 -28.9 -23.4



Protiviti

As Reported 21.2 10.4 1.3 -3.9 -5.0 4.3

Billing Days Impact -1.8 -0.6 -1.4 0.0 0.1 -1.4

Currency Impact 3.5 1.4 2.5 2.4 -3.1 -4.6

Intercompany -13.6 -7.9 ? ? ? ? Adjustments

As Adjusted 9.3 3.3 2.4 -1.5 -8.0 -1.7



Total

As Reported -0.7 -2.2 -4.4 -28.4 -23.4 -14.7

Billing Days Impact -1.6 -0.5 -1.3 0.0 0.1 -1.1

Currency Impact 3.7 2.1 3.0 2.7 -1.7 -3.4

As Adjusted 1.4 -0.6 -2.7 -25.7 -25.0 -19.2

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED SUMMARY OF OPERATIONS RECONCILIATION (UNAUDITED)

(in thousands)



Quarter Ended December 31, Relationships

2020 2019 2020 2019 2020 2019

Reported AdjustmentsAdjusted (1)Reported AdjustmentsAdjusted (1)Reported Adjusted

SERVICE REVENUES:

Temporary and consultant 850,438 850,438 1,106,325 1,106,325 65.2 % 72.0 %65.2 %72.0 %staffing

Permanent placement 91,387 91,387 126,394 126,394 7.0 % 8.2 %7.0 %8.2 %staffing

Protiviti 362,261 362,261 304,666 304,666 27.8 % 19.8 %27.8 %19.8 %

Total $1,304,086 $1,304,086$1,537,385 $1,537,385100.0 % 100.0%100.0%100.0%



GROSS MARGIN:

Temporary and consultant $327,181 $327,181 $420,248 $420,248 38.5 % 38.0 %38.5 %38.0 %staffing

Permanent placement 91,172 91,172 126,135 126,135 99.8 % 99.8 %99.8 %99.8 %staffing

Protiviti 95,989 5,419 101,408 90,478 2,083 92,561 26.5 % 29.7 %28.0 %30.4 %

Total $514,342 $5,419 $519,761 $636,861 $2,083 $638,944 39.4 % 41.4 %39.9 %41.6 %



SELLING GENERAL AND ADMINISTRATIVE EXPENSE:

Temporary and consultant $287,550 $(31,715)$255,835 $339,118 $(16,339)$322,779 33.8 % 30.7 %30.1 %29.2 %staffing

Permanent placement 86,572 (3,408) 83,164 112,835 (1,867) 110,968 94.7 % 89.3 %91.0 %87.8 %staffing

Protiviti 51,039 - 51,039 51,969 - 51,969 14.1 % 17.1 %14.1 %17.1 %

Total $425,161 $(35,123)$390,038 $503,922 $(18,206)$485,716 32.6 % 32.8 %29.9 %31.6 %



OPERATING/ SEGMENT INCOME:

Temporary and consultant $39,631 $31,715 $71,346 $81,130 $16,339 $97,469 4.7 % 7.3 %8.4 %8.8 %staffing

Permanent placement 4,600 3,408 8,008 13,300 1,867 15,167 5.0 % 10.5 %8.8 %12.0 %staffing

Protiviti 44,950 5,419 50,369 38,509 2,083 40,592 12.4 % 12.6 %13.9 %13.3 %

Total $89,181 $40,542 $129,723 $132,939 $20,289 $153,228 6.8 % 8.6 %9.9 %10.0 %

Amortization of intangible 217 - 217 339 - 339 0.0 % 0.0 %0.0 %0.0 %assets

Income from investments held in (40,542) 40,542 - (20,289) 20,289 - 3.1 % 1.3 %0.0 %0.0 % employee deferred compensation trusts

Interest (79) - (79) (1,357) - (1,357) 0.0 % 0.1 %0.0 %0.0 %income, net

Income before $129,585 $- $129,585 $154,246 $- $154,246 9.9 % 10.0 %9.9 %10.0 %income taxes

(1) Changes in the Company's deferred compensation obligations are included inselling, general and administrative expense or, in the case of Protiviti,direct cost, while investment income is presented separately. The non-GAAPfinancial measures shown in the table above are adjusted to reclassifyinvestment income from investments held in employee deferred compensationtrusts to the same line item which includes the corresponding change inobligation. 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)



Year Ended December 31, Relationships

2020 2019 2020 2019 2020 2019

Reported AdjustmentsAdjusted (1)Reported AdjustmentsAdjusted (1)Reported Adjusted

SERVICE REVENUES:

Temporary and consultant 3,477,335 3,477,335 4,412,125 4,412,125 68.1 % 72.6 %68.1 %72.6 %staffing

Permanent placement 370,109 370,109 533,432 533,432 7.2 % 8.8 %7.2 %8.8 %staffing

Protiviti 1,261,556 1,261,556 1,128,875 1,128,875 24.7 % 18.6 %24.7 %18.6 %

Total $5,109,000 $5,109,000$6,074,432 $6,074,432100.0 % 100.0%100.0%100.0%



GROSS MARGIN:

Temporary and consultant $1,312,797 $1,312,797$1,677,489 $1,677,48937.8 % 38.0 %37.8 %38.0 %staffing

Permanent placement 369,401 369,401 532,435 532,435 99.8 % 99.8 %99.8 %99.8 %staffing

Protiviti 330,413 11,682 342,095 315,205 5,390 320,595 26.2 % 27.9 %27.1 %28.4 %

Total $2,012,611$11,682 $2,024,293$2,525,129$5,390 $2,530,51939.4 % 41.6 %39.6 %41.7 %



SELLING GENERAL AND ADMINISTRATIVE EXPENSE:

Temporary and consultant $1,132,915$(57,397)$1,075,518$1,311,521$(44,185)$1,267,33632.6 % 29.7 %30.9 %28.7 %staffing

Permanent placement 346,711 (6,109) 340,602 453,892 (5,342) 448,550 93.7 % 85.1 %92.0 %84.1 %staffing

Protiviti 186,415 - 186,415 192,882 - 192,882 14.8 % 17.1 %14.8 %17.1 %

Total $1,666,041$(63,506)$1,602,535$1,958,295$(49,527)$1,908,76832.6 % 32.2 %31.4 %31.4 %



OPERATING/ SEGMENT INCOME:

Temporary and consultant $179,882 $57,397 $237,279 $365,968 $44,185 $410,153 5.2 % 8.3 %6.8 %9.3 %staffing

Permanent placement 22,690 6,109 28,799 78,543 5,342 83,885 6.1 % 14.7 %7.8 %15.7 %staffing

Protiviti 143,998 11,682 155,680 122,323 5,390 127,713 11.4 % 10.8 %12.3 %11.3 %

Total $346,570 $75,188 $421,758 $566,834 $54,917 621,751 6.8 % 9.3 %8.3 %10.2 %

Amortization of intangible 1,219 - 1,219 1,361 - 1,361 0.0 % 0.0 %0.0 %0.0 %assets

Income from investments held in employee (75,188) 75,188 - (54,917) 54,917 - 1.5 % 0.9 %0.0 %0.0 %deferred compensation trusts

Interest (1,343) - (1,343) (5,125) - (5,125) 0.0 % 0.1 %0.0 %0.1 %income, net

Income before $421,882 $- $421,882 $625,515 $- $625,515 8.3 % 10.3 %8.3 %10.3 %income taxes

(1) Changes in the Company's deferred compensation obligations are included inselling, general and administrative expense or, in the case of Protiviti,direct cost, while investment income is presented separately. The non-GAAPfinancial measures shown in the table above are adjusted to reclassifyinvestment income from investments held in employee deferred compensationtrusts to the same line item which includes the corresponding change inobligation. These adjustments have no impact to income before income taxes.

ROBERT HALF INTERNATIONAL INC.

NON-GAAP FINANCIAL MEASURES

COMBINED SEGMENT INCOME RECONCILIATION (UNAUDITED)

(in thousands)



Quarter Ended Year Ended December 31, December 31,

2020 2019 2020 2019



Income before income taxes $129,585$154,246$421,882$625,515

Interest income, net (79) (1,357) (1,343) (5,125)

Amortization of intangible 217 339 1,219 1,361 assets

Combined segment income $129,723$153,228$421,758$621,751

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SOURCE Robert Half