Robert Half International (RHI) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 26, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello, and welcome to the Robert Half First Quarter 2023 Conference Call. Today's conference call is being recorded. [Operator Instructions]. Our hosts for today's call are Mr. Keith Waddell, President and Chief Executive Officer of Robert Half and Mr. Michael Buckley, Chief Financial Officer. Mr. Waddell, you may begin.

M. Keith Waddell

Thank you. Hello, everyone. We appreciate your time today. Before we get started, I'd like to remind you that the comments made on today's call contain forward-looking statements, including predictions and estimates about our future performance. These statements represent our current judgment of what the future holds. However, they're subject to the risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties are described in today's press release and in our most recent 10-K and 10-Q filed with the SEC. We assume no obligation to update the statements made on today's call.

During this presentation, we may mention some non-GAAP financial measures and reference these figures as adjusted. Reconciliations and further explanation of these measures are included in a supplemental schedule to our earnings press release.

Our presentation of revenues and the related growth rates for each of our contract functional specializations includes intersegment revenues from services provided to Protiviti in connection with the company's blended talent solutions and consulting operations. This is how we measure and manage these businesses internally. The combined amount of intersegment revenues with Protiviti is also separately disclosed. For your convenience, our prepared remarks for today's call are available in the Investor Center of our website, roberthalf.com.

First quarter results were largely in-line with expectations. Protiviti led the way with its 22nd consecutive quarter of year-over-year revenue growth. Talent solutions performed well against a backdrop of client hiring caution and tight labor markets. We remain very optimistic about our ability to navigate the uncertain global macroeconomic environment and are well-positioned to benefit as the macro landscape improves.

For the first quarter of 2023, company-wide revenues were $1.716 billion down 5% from last year's first quarter on a reported basis and down 6% on an as adjusted basis. Net income per share in the first quarter was $1.14 compared to $1.52 in the first quarter one year ago. Cash flow from operations during the quarter was $66 million in March. We distributed a $0.48 per share cash dividend to our shareholders of record for a total cash outlay of $54 million. Our per share dividend growth was 11.7% annually since its inception in 2004.