Robert Half Inc. (RHI) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 25, 2023 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello, and welcome to the Robert Half Second 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.

Keith Waddell

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 practice groups 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.

Second quarter results for Talent Solutions were impacted by elongated client hiring cycles resulting from ongoing global macro uncertainty. Protiviti was much less impacted with its diversified suite of solutions offerings. Pricing and gross margins remained strong, demonstrating the value-added benefit we continue to deliver for our clients. We remain confident that we're well-positioned to benefit significantly as the macro landscape improves.

For the second quarter of 2023, company-wide revenues were $1.639 billion, down 12% from last year's second quarter on both a reported and as-adjusted basis. Net income per share in the second quarter was $1 compared to $1.6 0 in the second quarter one year ago. Cash flow from operations during the quarter was $281 million. In June, we distributed a $0.48 per share cash dividend to our shareholders of record for a total cash outlay of $51 million.