rhi-20240630

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

FORM 10-Q

______________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM to .

Commission File Number 1-10427

ROBERT HALF INC.

(Exact name of registrant as specified in its charter)


Delaware		94-1648752
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2884 Sand Hill Road
Suite 200
Menlo Park,	California	94025
(Address of principal executive offices)		(zip-code)

Registrant’s telephone number, including area code: (650) 234-6000


Securities registered pursuant to Section 12(b) of the Act
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	RHI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of June 30, 2024:

104,056,508 shares of $0.001 par value Common Stock

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ROBERT HALF INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (UNAUDITED)

(in thousands, except share amounts)


	June 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	547,370	$	731,740
Accounts receivable, net	893,467		860,872
Employee deferred compensation trust assets	638,480		571,046
Other current assets	148,023		133,481
Total current assets	2,227,340		2,297,139
Property and equipment, net	113,202		108,809
Right-of-use assets	200,640		209,256

Goodwill	237,640		237,970
Noncurrent deferred income taxes	144,427		140,135
Other noncurrent assets	14,500		17,480
Total assets	$	2,937,749	$	3,010,789
LIABILITIES
Accounts payable and accrued expenses	$	158,980	$	156,662
Accrued payroll and benefit costs	386,702		413,933
Employee deferred compensation plan obligations	627,990		572,913
Income taxes payable	18,645		11,144

Current operating lease liabilities	70,947		80,459
Total current liabilities	1,263,264		1,235,111

Noncurrent operating lease liabilities	167,974		161,440
Other noncurrent liabilities	26,356		25,887
Total liabilities	1,457,594		1,422,438
Commitments and Contingencies (Note K)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value; authorized 5,000,000 shares; none issued	—		—
Common stock, $0.001 par value; authorized 260,000,000 shares; issued and outstanding 104,055,679 shares and 105,208,817 shares	104		105
Additional paid-in capital	1,387,110		1,354,703
Accumulated other comprehensive loss	(50,591)		(32,626)
Retained earnings	143,532		266,169
Total stockholders’ equity	1,480,155		1,588,351
Total liabilities and stockholders’ equity	$	2,937,749	$	3,010,789

The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

are an integral part of these financial statements.

ROBERT HALF INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share amounts)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023

Service revenues	$	1,472,524	$	1,639,478	$	2,948,461	$	3,355,813
Costs of services	895,845		979,309		1,808,985		2,005,912
Gross margin	576,679		660,169		1,139,476		1,349,901
Selling, general and administrative expenses	500,832		541,904		1,022,427		1,094,133
Income from investments held in employee deferred compensation trusts (which is completely offset by related costs and expenses - Note A)	(15,733)		(28,347)		(59,109)		(55,638)
Amortization of intangible assets	304		721		608		1,442
Interest income, net	(5,186)		(5,320)		(11,599)		(10,145)
Income before income taxes	96,462		151,211		187,149		320,109
Provision for income taxes	28,306		44,919		55,292		91,812
Net income	$	68,156	$	106,292	$	131,857	$	228,297

Net income per share:
Basic	$	0.66	$	1.00	$	1.27	$	2.15
Diluted	$	0.66	$	1.00	$	1.27	$	2.14

Weighted average shares:
Basic	103,151		106,102		103,469		106,260
Diluted	103,328		106,422		103,864		106,775

Dividends declared per share	$	0.53	$	0.48	$	1.06	$	0.96

The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

are an integral part of these financial statements.

ROBERT HALF INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(in thousands)


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
COMPREHENSIVE INCOME (LOSS):
Net income	$	68,156	$	106,292	$	131,857	$	228,297
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	(6,628)		2,114		(18,050)		6,966
Foreign defined benefit plan adjustments, net of tax	42		34		85		68
Total other comprehensive income (loss)	(6,586)		2,148		(17,965)		7,034
Total comprehensive income (loss)	$	61,570	$	108,440	$	113,892	$	235,331

The accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

are an integral part of these financial statements.

ROBERT HALF INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(in thousands, except per share amounts)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
	Shares	Par Value
Balance at December 31, 2023	105,209	$	105	$	1,354,703	$	(32,626)	$	266,169	$	1,588,351
Net income	—	—		—		—		63,701		63,701
Other comprehensive income (loss)	—	—		—		(11,379)		—		(11,379)
Dividends declared ($0.53 per share)	—	—		—		—		(56,382)		(56,382)
Net issuances of restricted stock	751	1		(1)		—		—		—
Stock-based compensation	—	—		16,777		—		—		16,777
Repurchases of common stock	(1,028)	(1)		—		—		(81,822)		(81,823)
Balance at March 31, 2024	104,932	$	105	$	1,371,479	$	(44,005)	$	191,666	$	1,519,245

Net income	—	—		—		—		68,156		68,156
Other comprehensive income (loss)	—	—		—		(6,586)		—		(6,586)
Dividends declared ($0.53 per share)	—	—		—		—		(55,407)		(55,407)
Net issuances of restricted stock	27	—		—		—		—		—
Stock-based compensation	—	—		15,631		—		—		15,631
Repurchases of common stock	(903)	(1)		—		—		(60,883)		(60,884)
Balance at June 30, 2024	104,056	$	104	$	1,387,110	$	(50,591)	$	143,532	$	1,480,155

SEC Form 10-Q filed by Robert Half Inc.