rhi-20230630

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, 2023


☐			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 July 31, 2023:

107,082,279 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, 2023		December 31, 2022
ASSETS
Cash and cash equivalents	$	722,763	$	658,626
Accounts receivable, net	974,008		1,018,287
Employee deferred compensation trust assets	542,238		432,734
Other current assets	139,095		175,465
Total current assets	2,378,104		2,285,112
Property and equipment, net	106,267		109,687
Right-of-use assets	184,484		201,998

Goodwill	238,222		237,810
Noncurrent deferred income taxes	128,245		124,564
Other noncurrent assets	32,319		5,317
Total assets	$	3,067,641	$	2,964,488
LIABILITIES
Accounts payable and accrued expenses	$	149,417	$	168,163
Accrued payroll and benefit costs	447,714		472,310
Employee deferred compensation plan obligations	530,529		474,111
Income taxes payable	66,655		15,535

Current operating lease liabilities	82,256		86,083
Total current liabilities	1,276,571		1,216,202

Noncurrent operating lease liabilities	136,012		151,768
Other liabilities	29,787		27,960
Total liabilities	1,442,370		1,395,930
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 107,132,280 shares and 107,698,498 shares	107		108
Additional paid-in capital	1,324,451		1,293,565
Accumulated other comprehensive income (loss)	(36,589)		(43,623)
Retained earnings	337,302		318,508
Total stockholders’ equity	1,625,271		1,568,558
Total liabilities and stockholders’ equity	$	3,067,641	$	2,964,488

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,
	2023		2022		2023		2022

Service revenues	$	1,639,478	$	1,862,827	$	3,355,813	$	3,677,661
Costs of services	979,309		1,047,280		2,005,912		2,090,268
Gross margin	660,169		815,547		1,349,901		1,587,393
Selling, general and administrative expenses	541,904		509,394		1,094,133		1,023,588
(Income) loss from investments held in employee deferred compensation trusts	(28,347)		65,622		(55,638)		95,623
Amortization of intangible assets	721		416		1,442		833
Interest income, net	(5,320)		(718)		(10,145)		(884)
Income before income taxes	151,211		240,833		320,109		468,233
Provision for income taxes	44,919		65,012		91,812		124,173
Net income	$	106,292	$	175,821	$	228,297	$	344,060

Net income per share:
Basic	$	1.00	$	1.62	$	2.15	$	3.16
Diluted	$	1.00	$	1.60	$	2.14	$	3.12

Shares:
Basic	106,102		108,833		106,260		109,025
Diluted	106,422		109,696		106,775		110,143
Dividends declared per share	$	0.48	$	0.43	$	0.96	$	0.86

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,
	2023		2022		2023		2022
COMPREHENSIVE INCOME (LOSS):
Net income	$	106,292	$	175,821	$	228,297	$	344,060
Other comprehensive income (loss):
Foreign currency translation adjustments, net of tax	2,114		(24,048)		6,966		(25,016)
Foreign defined benefit plan adjustments, net of tax	34		15		68		31
Total other comprehensive income (loss)	2,148		(24,033)		7,034		(24,985)
Total comprehensive income (loss)	$	108,440	$	151,788	$	235,331	$	319,075

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 Income (Loss)		Retained Earnings		Total
	Shares	Par Value
Balance at December 31, 2022	107,698	$	108	$	1,293,565	$	(43,623)	$	318,508	$	1,568,558
Net income	—	—		—		—		122,005		122,005
Other comprehensive income (loss)	—	—		—		4,886		—		4,886
Dividends declared ($0.48 per share)	—	—		—		—		(52,529)		(52,529)
Net issuances of restricted stock	831	1		(1)		—		—		—
Stock-based compensation	—	—		15,434		—		—		15,434
Repurchases of common stock	(766)	(1)		—		—		(59,872)		(59,873)
Balance at March 31, 2023	107,763	$	108	$	1,308,998	$	(38,737)	$	328,112	$	1,598,481

Net income	—	—		—		—		106,292		106,292
Other comprehensive income (loss)	—	—		—		2,148		—		2,148
Dividends declared ($0.48 per share)	—	—		—		—		(51,565)		(51,565)
Net issuances of restricted stock	23	—		—		—		—		—
Stock-based compensation	—	—		15,453		—		—		15,453
Repurchases of common stock	(654)	(1)		—		—		(45,537)		(45,538)
Balance at June 30, 2023	107,132	$	107	$	1,324,451	$	(36,589)	$	337,302	$	1,625,271


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Total
	Shares	Par Value
Balance at December 31, 2021	110,686	$	111	$	1,235,903	$	(22,622)	$	167,659	$	1,381,051
Net income	—	—		—		—		168,239		168,239
Other comprehensive income (loss)	—	—		—		(952)		—		(952)
Dividends declared ($0.43 per share)	—	—		—		—		(48,413)		(48,413)
Net issuances of restricted stock	598	1		(1)		—		—		—
Stock-based compensation	—	—		15,184		—		—		15,184
Repurchases of common stock	(537)	(1)		—		—		(62,340)		(62,341)
Balance at March 31, 2022	110,747	$

SEC Form 10-Q filed by Robert Half Inc.